Business Pol & Strategic Mgt
Business Pol & Strategic Mgt MGT 409
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This 9 page Class Notes was uploaded by Alexanne Baumbach III on Saturday September 19, 2015. The Class Notes belongs to MGT 409 at Michigan State University taught by Jamal Shamsie in Fall. Since its upload, it has received 12 views. For similar materials see /class/207742/mgt-409-michigan-state-university in Business, management at Michigan State University.
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Date Created: 09/19/15
Lecture 3 Industry Dynamics What are the Shortcomings of Porter s Five Forces Model Emphasis on Overall Attractiveness of an Industry Not enough focus on sources of attractiveness Examines Forces for all of the Firms within an Industry Does not differentiate between firms competing within the same industry What are the Shortcomings of Porter s Five Forces Model Considers Existing Conditions within the Industry Does not account for changes that could occur over time Assumes Power can only Hurt Firms within the Industry Neglects benefits that could arise from mutually beneficial relationships How do Firms Define their Industry oProduct Driven Vs oNeed Driven How do Firms Detect Industry Shifts Issues with Scanning Issues with Recognition Issues with Interpretation How do Firms Identify their Competition Firms learn to differentiate between their competitors on the basis of strategic groups What are Strategic Groups Strategic groups represent a grouping of firms within a given industry which are most likely to be competing directly with each other What is the Significance of Strategic Groups Firms within the same strategic group follow a similar strategy oOffer similar product or service oTarget the same customers What is the Significance of Strategic Groups oFirms learn to pay more attention to competitors within its strategic group oFirms in each strategic group face different industry conditions oFirms need to reassess these groupings on a regular basis