MGT 405 Chpt 2

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LShak87
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67508
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MGT 405 Chpt 2
Updated:
2011-02-19 17:04:33
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strategic management
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Description:
External Analysis: The Identification of Opportunities and Threats
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  1. arise when a company can take advantage of conditions in its environment to formulate and implement strategies that enable it to become more profitable
    opportunities
  2. arise when conditions in the external environment endanger the integrity and profitability of the company's business
    threats
  3. a group of companies offering products or services that are close substitutes for each other
    industry
  4. products or services that stisfy the same basic customer needs
    substitutes
  5. a group of closely related industries
    sector
  6. distinct groups of customers wintin a market that can be differentiated from each other on the basis of their distinct attributes and specific demands
    market segment
  7. companies that are not currently competing in an industry but have the capability to do so if they choose
    potential competitors
  8. when unit costs fall as a firm expands its output
    economies of scale
  9. when consumers have a preference for the products of established companies
    brand loyalty
  10. when an established company has such a low cost structure that new entrants cannot expect to match this structure
    absolute cost advantage
  11. when it costs a customer time, energy, and money to switch from the products offered by one established company to the products offered by a new entrant
    switching costs
  12. the number and size distribution of companies in an industry
    competitive structure of an industry
  13. economic, strategic, and emotional factors that prevent companies from leaving an industry
    exit barriers
  14. companies that sell products that add value to the products of companies in an industry because when used together, the products better satisfy customer demands
    complementors
  15. within-industry factors that inhibit the movement of companies between strategic groups
    mobility barriers
  16. identifies five sequential stages in the evolution of an industry that lead to five distinct kinds of industry environment
    industry life cycle
  17. What are the 5 stages of the industry life cycle?
    • embryonic
    • growth
    • shakeout
    • mature
    • decline
  18. states that long periods of equilibrium, when an industry's structure is stable, are punctuated by periods of rapid change when industry structure is revolutionized by innovation
    punctuated equilibrium
  19. What are the 5 forces behind Porter's Five Forces Model?
    • Intensity of rivalry among established firms
    • Risk of entry from protential competitors
    • Threat of substitutes
    • Bargaining power of buyers
    • Bargaining power of suppliers

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