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- 1. 1. Remote Environment EconomicFactors • Concern the nature and direction of economy in which a firm operates • Types of factors • General availability of credit • Level of disposable income • Propensity of people to spend • Prime interest rates • Inflation rates • Trends in growth of gross national product
- 2. Social Factors • Beliefs,values, opinions, and lifestyles of people • Recent social trends • Entry of large numbers of women into labor market • Accelerating interest of consumers and employees in quality-of-life issues • Shift in age distribution of population
- 3. Political Factors • Definelegal and regulatory parameters within which firms must operate • Types of factors – Free-trade agreements – Antitrust laws – Tax programs – Minimum wage legislation – Pollution and pricing policies – Administrative jawboning
- 4. Technological Factors • Focuson technological changes affecting industry • Types of changes • New products • Improvements in existing products • Manufacturing and marketing techniques • Role of technological forecasting • Foresees advancements and estimating their impact on organization’s operations • Alerts managers to impending challenges and promising opportunities
- 5. Ecological Factors • Ecologyrefers to the relationships among human beings and other living things and air, soil, and water • Current concerns • Global warming • Loss of habitat and biodiversity • Air, water, and land pollution • Responsibilities of firms • Eliminating toxic by-products of current manufacturing processes • Cleaning up prior environmental damage
- 6. 1. 企業本身與同業直接競爭者間的競爭強度 (Rivalry Determinants) 同產業的廠商數目 同產業廠商間的市場佔有率 同產業廠商間的市場成長率 同產業廠商間產品的差異性 同產業廠商間該產品的成本結構 同產業廠商間該產品的轉換成本 同產業廠商間該產品的品牌強度 同產業廠商間該產品的利潤空間 同產業廠商間該產品的客戶群結構 該產業之產業集中度 該產業之進入障礙 …… 2.來自供應商的議價能力 (Suppliers Bargaining Power) 只有一家 是否為少數供應商 是否為特殊規格 關鍵性零件 … 3. 買主的議價能力 (Buyers Bargaining Power) 可分消費性消耗品與工業性可轉賣品 產品特徵 產品價格 品牌強度 價格對市場的敏感度 買主的預算 購買數量 買主的喜好 … 4. 來自潛在進入者的威脅力 Economies of scale Product differentiation Capital requirements Cost advantages independent of size Access to distribution channels Government policy 5. 替代性產品的威脅力 (Substitution Threat) 價值 / 價格比 … 2. Industry Environment
- 7. Competitive Force: Threatof Entry • Seriousness of threat depends on • Barriers to entry • Reaction of existing firms • Barriers to entry • Product differentiation • Capital requirements • Cost advantages • Access to distribution channels • Government policy
- 8. Competitive Force: Suppliers •A supplier group is powerful if: • It is dominated by a few companies and is more concentrated than industry it sells to • Its product is unique, or differentiated, or has built up switching costs • It is not obliged to contend with other products for sale to industry • It poses a threat of integrating forward into industry’s business • Industry is not an important customer of supplier group
- 9. Competitive Force: Buyers •A buyer group is powerful if: • It is concentrated or purchases in large volume • Products purchased from industry are standard or undifferentiated • Products purchased from industry form a component of its product, representing a significant fraction of its cost • It earns low profits, creating incentives to lower its costs • Industry’s product is unimportant to quality of buyers’ products or services • Industry’s product does not save buyer money • Buyer poses credible threat of integrating backward
- 10. Competitive Force: SubstituteProducts • Relevance of substitutes • By placing a ceiling on prices charged, they limit profit potential of an industry • Substitutes deserving the most attention are those • Subject to trends improving their price-performance trade-off with the industry’s product • Produced by industries earning high profit
- 11. What Causes Rivalryto be Intense? 競爭力越高 , 利潤被瓜分的越多 • Numerous competitors or they are roughly equal in size and power • Slow growth in industry • Product lacks differentiation or switching costs • High fixed costs or perishable product • Capacity normally augmented in large increments • High exit barriers • Rivals are diverse in strategies, origins, and “personalities”
- 12. 3. Operating Environment Theoperating environment comprises factors in the competitive situation that affect a firm’s success in acquiring needed resources or in profitably marketing its goods and services
- 13. Factors in theOperating Environment • Firm’s competitive position • The composition of its customers • Its reputation among suppliers and creditors • Its ability to attract capable employees
- 14. Constructing competitor profiles •Market share • Breadth of product line • Effectiveness of sales distribution • Proprietary and key-account advantages • Price competitiveness • Advertising and promotion effectiveness • Location and age of facility • Capacity and productivity • Experience • Raw material costs • Financial position • Relative product quality • R&D advantages position • Caliber of personnel • General images • Customer profile • Patents and copyrights • Union relations • Technological position • Community reputation
- 15. III. Internal Analysis •Resource-based View of the Firm • Value Chain Analysis • SWOT Analysis • Internal Analysis: Making Meaningful Comparisons
- 16. What is theResource-based View of the Firm? Firms differ in fundamental ways because each firm possesses a unique “bundle” of resources – tangible and intangible assets and organizational capabilities to make use of those assets.
- 17. The Three BasicResources • Tangible assets • Easiest to identify and often found on a firm’s balance sheet • Include physical and financial assets • Examples: production facilities, raw materials, financial resources • Intangible assets • Cannot be seen or touched • Often very critical in creating competitive advantage • Examples: brand names, company reputation, company morale • Organizational capabilities • Involve skills – ability to combine assets, people, and processes – used to transform inputs into outputs
- 18. What Makes aResource Valuable? • Competitive superiority: Does the resource help fulfill a customer’s need better than those of the firm’s competitors? • Resource scarcity: Is the resource in short supply? • Inimitability: Is the resource easily copied or acquired? • Appropriability: Who actually gets the profit created by a resource? • Durability: How rapidly will the resource depreciate? • Substitutability? Are other alternatives available?
- 19. Isolating Mechanisms • Physicallyunique resources • Resources virtually impossible to imitate • E.g., one-of-a-kind real estate location, mineral rights, patents • Path-dependent resources – Resources that must be created over time in a manner that is often expensive and difficult to accelerate – E.g., Dell Computer’s system of direct sales of customized PCs via the Internet, Coca-Cola’s brand name, Gerber Baby Food’s reputation for quality
- 20. Isolating Mechanisms • Causalambiguity • Situations where it is difficult for competitors to understand how a firm has created its advantage • E.g., Southwest Airlines’ approach • Same plane, routes, gate procedures, number of attendants • Culture of fun, family, and frugal yet focused service • Economic deterrence • Involves large capital investments in capacity to produce products or services in a given market that are scale sensitive
- 21. Resource Inimitability (Adapted) • Easyto imitate • Cash, commodities • Can be imitated (but may not be) • Capacity preemption, economies of scale • Difficult to imitate • Brand loyalty, employee satisfaction, reputation for fairness • Cannot be imitated • Patents, unique locations, unique assets
- 22. Key Resources AcrossFunctional Areas (Selected) Marketing • Firm’s products/services • Concentration of sales in a few products or a few customers • Ability to gather needed information about markets • Market share • Product-service mix and expansion potential • Channels of distribution • Effective sales organization Financial and Accounting • Ability to raise short-term and long-term capital; debt- equity • Corporate-level resources • Cost of capital relative to competitors • Tax considerations • Relations with owners, investors, and stockholders • Leverage position • Cost of entry and barriers to entry
- 23. (contd.) Production, Operations, Technical • Rawmaterials cost and availability, supplier relationships • Inventory control systems • Location, layout, and use of facilities • Economies of scale • Technical efficiency of facilities • Effectiveness of subcontracting use • Degree of vertical integration Personnel • Management personnel • Employees’ skills and morale • Labor relations costs compared to competitors • Efficiency and effectiveness of personnel policies • Effectiveness of incentives used to motivate performance • Ability to level peaks and valleys of employment
- 24. (contd.) Quality Management • Relationshipswith suppliers, customers • Internal practices to enhance quality of products and services • Procedures for monitoring quality Information Systems • Timeliness and accuracy of information about sales, operations, cash, and suppliers • Relevance of information for tactical decisions • Information to manage quality issues, customer service • Ability of people to use information provided
- 25. (contd.) Organization and GeneralManagement • Organizational structure • Firm’s image and prestige • Firm’s record in achieving objectives • Organization of communication system • Organizational climate and culture • Use of systematic procedures in decision making • Top management skills, capabilities, and interest • Strategic planning system • Intra-organizational synergy
- 26. What is aValue Chain? The term value chain describes a way of looking at a business as a chain of activities that transform inputs into outputs that customers value
- 27.