This is the 3rd part of the undergraduate course in Growth Strategies: Rivalry in the External Environment. Read by Pavel Luksha

1. GROWTH STRATEGIES External Environment: Rivalry Pavel Olegovich Luksha [email_address]

5. Intensity of rivalry: driving factors Intensity of Rivalry Numerous or Equally Balanced Competitors (Airbus vs. Boeing) Slow Industry Growth (Airline Industry) High Fixed Costs or High Storage Costs (Automobile Manufacturing) Lack of Differentiation or Low Switching Costs (Personal Computers) High Strategic Stakes (Consumer Electronics) High Exit Barriers (Specialized Assets, Labor Agreements, Government Restrictions)

6. Porter’s ‘Five forces of competition’

7. Porter’s types of ‘generic competitive strategies’ differentiation focus cost focus Narrow competitive scope differentiation cost leadership Broad competitive scope Quality as competitive tool Cost as competitive tool

18. Segments that proved to be HUGE business women kidults new retired riches generation Y

26. Time for the group project ‘ Good to great’: is the focused strategy a key to success?

27. Positive feedback loops lower vendors’ cost in software development increasing availability of software and solutions unified standards of working file formats and user networks increased attractiveness for PC distributors and system integrators increased attractiveness for PC manufacturers Cycle of growth for Windows: benefiting from increasing returns effect

33. Rivalry and growth strategies: the automotive market