international business environment & strategy · pdf fileinternational business...
TRANSCRIPT
International Business Environment & Strategy
BC430002S
Competition analysis – Porter 5 forces plus
Robert Jones © 2010 [email protected]
Source: Johnson G. & Scholes K., Exploring Corporate Strategy, Pearson Education, 2002. Adapted from M.E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors © 1980, Free Press, 1980, p. 4. Copyright 1980,1988 by The Free Press, a division of Simon & Schuster Inc. Reproduced with permission.!
Five forces of competition
Remember – use Porter’s terminology
Source: Johnson G. & Scholes K., Exploring Corporate Strategy, Pearson Education, 2002. Adapted from M.E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors © 1980, Free Press, 1980, p. 4. Copyright 1980,1988 by The Free Press, a division of Simon & Schuster Inc. Reproduced with permission.!
Five forces of competition
Remember – use Porter’s terminology
Source: Johnson G. & Scholes K., Exploring Corporate Strategy, Pearson Education, 2002. Adapted from M.E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors © 1980, Free Press, 1980, p. 4. Copyright 1980,1988 by The Free Press, a division of Simon & Schuster Inc. Reproduced with permission.!
Five forces of competition
Switching costs Switching costs
High, medium or low?
Barriers to entry
Remember – use Porter’s terminology
Source: Johnson G. & Scholes K., Exploring Corporate Strategy, Pearson Education, 2002. Adapted from M.E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors © 1980, Free Press, 1980, p. 4. Copyright 1980,1988 by The Free Press, a division of Simon & Schuster Inc. Reproduced with permission.!
Five forces of competition
Remember – use Porter’s terminology
Barriers to entry
Start here
First force - competitive rivalry Make your 5-forces analysis quantitative Identify the key competitors and their market shares:-
Source: TNS Worldpanel http://www.tnsglobal.com
Source: TNS Worldpanel http://www.tnsglobal.com
Source: Johnson G. & Scholes K., Exploring Corporate Strategy, Pearson Education, 2002. Adapted from M.E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors © 1980, Free Press, 1980, p. 4. Copyright 1980,1988 by The Free Press, a division of Simon & Schuster Inc. Reproduced with permission.!
Five forces of competition
The central force is most important – use lots of data
Who is winning? Who is standing still? Who is losing?
Identify the key players
Market conditions
Source: Johnson G. & Scholes K., Exploring Corporate Strategy, Pearson Education, 2002. Adapted from M.E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors © 1980, Free Press, 1980, p. 4. Copyright 1980,1988 by The Free Press, a division of Simon & Schuster Inc. Reproduced with permission.!
Five forces of competition possibilities of collaboration
Vertical integration - forwards
Vertical integration - backwards
Source: Johnson G. & Scholes K., Exploring Corporate Strategy, Pearson Education, 2002. Adapted from M.E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors © 1980, Free Press, 1980, p. 4. Copyright 1980,1988 by The Free Press, a division of Simon & Schuster Inc. Reproduced with permission.!
Five forces of competition – the threat axis
Source: Johnson G. & Scholes K., Exploring Corporate Strategy, Pearson Education, 2002. Adapted from M.E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors © 1980, Free Press, 1980, p. 4. Copyright 1980,1988 by The Free Press, a division of Simon & Schuster Inc. Reproduced with permission.!
Five forces of competition – new entrants
Barriers to entry
How to enter? 1.) 2.) 3.) 4.)
Is this the full picture?
Source: Johnson G. & Scholes K., Exploring Corporate Strategy, Pearson Education, 2002. Adapted from M.E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors © 1980, Free Press, 1980, p. 4. Copyright 1980,1988 by The Free Press, a division of Simon & Schuster Inc. Reproduced with permission.!3 new forces adapted from Downes, L. & Mui, C. Unleashing The Killer App – Unleashing Strategies for Market Dominance, Harvard Business School Press, 1998 See page 65 “The New Forces”!
Other forces of competition?
Other force/s?
The market exists inside The macro environment –
Porter 5 fits inside PESTEL
Political
Legal
Economic
Social
Technology
© Robert Jones 2009 Based on Porter 1980
laws rules regulations taxes
interest rates exchange rates
demographics
web-based, digital
WTO EU Government
Source: Johnson G. & Scholes K., Exploring Corporate Strategy, Pearson Education, 2002. Adapted from M.E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors © 1980, Free Press, 1980, p. 4. Copyright 1980,1988 by The Free Press, a division of Simon & Schuster Inc. Reproduced with permission.!3 new forces adapted from Downes, L. & Mui, C. Unleashing The Killer App – Unleashing Strategies for Market Dominance, Harvard Business School Press, 1998 See page 65 “The New Forces”!
Five-plus forces of competition
Source: Johnson G. & Scholes K., Exploring Corporate Strategy, Pearson Education, 2002. Adapted from M.E. Porter, Competitive Strategy: Techniques for Analyzing Industries and Competitors © 1980, Free Press, 1980, p. 4. Copyright 1980,1988 by The Free Press, a division of Simon & Schuster Inc. Reproduced with permission.!3 new forces adapted from Downes, L. & Mui, C. Unleashing The Killer App – Unleashing Strategies for Market Dominance, Harvard Business School Press, 1998 See page 65 “The New Forces”!
Five-plus forces of competition
Other force/s? Specific to sector
Privatisation Liberalisation
but…re-regulation? New regulations?
14 Cs