产业和竞争力分析课件

INDUSTRYANDCOMPETITIVEANALYSIS

CHAPTER2INDUSTRYANDCOMPETITIVEA1“Analysisisthecriticalstartingpointofstrategicthinking.”“Quote”“Analysisisthecriticalstar2ChapterOutlineRoleofSituationAnalysisinStrategy-MakingMethodsofIndustryandCompetitiveAnalysisIndustry’sDominantEconomicTraitsIndustry’sCompetitiveForcesDriversofIndustryChangeCompetitivePositionsofRivalsCompetitiveMovesofRivalsKeySuccessFactorsConclusions:OverallIndustryAttractivenessConductinganIndustryandCompetitiveAnalysisChapterOutlineRoleofSituat3GoodSituationAnalysisLeadstoGoodStrategicChoices1.Industry’sdominanteconomictraits2.Natureofcompetition&strengthofcompetitiveforces3.Driversofindustrychange4.Competitivepositionofrivals5.Strategicmovesofrivals6.Keysuccessfactors7.Conclusionsaboutindustryattractiveness(Chapter2)AssessIndustry&CompetitiveConditions1.Assessmentofcompany’spresentstrategy2.Strengths,weaknesses,opportunities,&threats3.Company’scostscomparedtorivals4.Strengthofcompany’scompetitiveposition5.Strategicissuestobeaddressed(Chapter3)AssessCompanySituation

IdentifyStrategicOptionsfortheCompanySelecttheBestStrategyfortheCompany-Competitive/BusinessUnitOptionsChapter4&otherChaptersGoodSituationAnalysisLea4Question1:WhatArethe

Industry’sDominantEconomicTraits?Marketsizeand

growthrate(Scopeofcompetitiverivalry)Numberofcompetitors

andtheirrelativesizesPrevalence(流行）

ofbackward/forwardintegrationEntry/exitbarriersNatureandpaceoftechnologicalchangeProductandcustomercharacteristicsScaleeconomiesandexperiencecurveeffectsCapacityutilizationandresourcerequirements(Industryprofitability)Question1:WhatArethe

I5TheExperienceCurveEffectAnexperiencecurveexistswhenunitcostsdeclineascumulativeproductionvolumeincreasesbecauseofAccumulatingproductionknow-howGrowingmasteryofthetechnologyThebiggertheexperiencecurveeffect,thebiggerthecostadvantageofthefirmwiththelargestcumulativeproductionvolumeTheExperienceCurveEffect6CostAdvantagesof

DifferentExperienceCurveEffects$1$9.729.512.34310%CostReduction20%CostReduction30%CostReduction1MillionUnits2MillionUnits4MillionUnits8MillionUnitsCostperUnitCostAdvantagesof

Different7Relevanceof

KeyEconomicFeaturesEconomicFeatureMarketSizeMarketgrowthrateCapacitysurpluses/shortagesIndustryprofitabilityEntry/exitbarriersProductisbig-ticketitemforbuyersStandardproductsRapidtechnologicalchangeCapitalrequirementsVerticalintegrationEconomiesofscaleRapidproductinnovationStrategicImportanceSmallmarketsdon’ttendtoattractnewfirms;largemarketsattractfirmslookingtoacquirerivalswithestablishedpositionsinattractiveindustriesFastgrowthbreedsnewentry;slowgrowthspawns（孕育）increasedrivalry&shake-outofweakrivalsSurplusespushprices&profitmarginsdown;shortagespullthemupHigh-profitindustriesattractnewentrants;depressedconditionsleadtoexitHighbarriersprotectpositionsandprofitsofexistingfirms;lowbarriersmakeexistingfirmsvulnerabletoentryMorebuyerswillshopforlowestprice(big-ticket=highprice)Buyershavemorepowerbecauseit’seasiertoswitchfromsellertosellerRaisesrisk;investmentsintechnologyfacilities/equipmentmaybecomeobsoletebeforetheywearoutBigrequirementsmakeinvestmentdecisionscritical;timingbecomesimportant;createsabarriertoentryandexitRaisescapitalrequirements;oftencreatescompetitive&costdifferencesamongfullyvs.partiallyvs.non-integratedfirmsIncreasesvolume&marketshareneededtobecostcompetitiveShortensproductlifecycle;increasesriskbecauseofopportunitiesforleapfroggingRelevanceof

KeyEconomicF8Question2:WhatisCompetitionLike&HowStrongAretheCompetitiveForces?ToidentifyMainsourcesofcompetitiveforcesStrengthoftheseforcesKeyanalyticaltoolFiveForcesModelofCompetitionObjectiveQuestion2:WhatisCompet9FiveForcesModelofCompetitionSubstituteProducts(offirmsinotherindustries)RivalryAmongCompetingSellersPotentialNewEntrantsSuppliersofKeyInputsBuyersSubstituteProducts(offirmsinotherindustries)RivalryAmongCompetingSellersPotentialNewEntrantsBargainingPowerandLeverageofSuppliersofKeyInputs

BargainingPowerandLeverageofBuyersFiveForcesModelofCompe10AnalyzingtheFiveCompetitiveForces:HowtoDoItAssessstrengthofeachcompetitiveforce(Strong?Moderate?Weak?)RivalryamongcompetitorsSubstituteproductsPotentialentryBargainingpowerofsuppliersBargainingpowerofbuyersExplainhoweachforceactstocreatecompetitivepressureDecidewhetheroverallcompetitionisbrutal,fierce,strong,normal/moderate,orweakandhowcaninfluencefutureperformanceofthecompetingcompaniesAnalyzingtheFiveCompetiti11RivalryAmongCompetingSellersUsuallythemostpowerfulofthefiveforcesCheckwhichweaponsofcompetitiverivalryaremostactivelyusedbyrivalsinjockeying（嗣机寻找）forpositionPriceQualityPerformancefeaturesofferedCustomerserviceWarranties/guaranteesAdvertising/promotionsDealernetworksProductinnovationRivalryAmongCompetingSel12WhatCausesRivalrytoBeStronger?SlowmarketgrowthCostsmoretogetoutofbusinessthantostayin(Exitbarriers)Industryconditionstempt（诱惑）somefirmstogoontheoffensivetoboostvolumeandmarketshare(ScaleEconomiesorLearningCurvetobeachieved)Asuccessfulstrategicmovecarriesabigpayoff（决定性招数）Oneormorefirmsinitiatesmovestobolster（支持）theirstandingatexpenseofrivalsCustomershavelowcostsinswitchingbrandsLotsoffirms,moreequalinsizeandcapabilityFirmshavediversestrategies,corporatepriorities,resources,andcountriesoforiginWhatCausesRivalrytoBe13CompetitiveForceofPotentialEntrySeriousnessofthreatdependsonAttractivenessoftheindustryforthenewentrantBarrierstoentryReactionofexistingfirmstoentryBarriersexistwhenNewcomersconfrontobstaclesEconomicfactorsputpotentialentrantatadisadvantagerelativetoincumbentfirmsCompetitiveForceofPotent14CommonBarrierstoEntryEconomiesofscaleInabilitytogainaccesstospecializedtechnologyExistenceoflearning/experiencecurveeffectsStrongbrandpreferencesandcustomerloyaltyCapitalrequirementsand/orotherspecializedresourcerequirementsCostdisadvantagesindependentofsizeAccesstodistributionchannelsRegulatorypolicies,tariffs,traderestrictionsCommonBarrierstoEntryEco15PrincipleofCompetitiveMarkets

Threatofentryisstrongerwhen:EntrybarriersarelowSizablepoolofentrycandidatesexistsIncumbentsareunwillingorunabletocontestanewcomer’sentryeffortsNewcomercanexpecttoearnattractiveprofitsPrincipleofCompetitiveMa16CompetitiveForceof

SubstituteProductsSubstitutes

matterwhencustomersareattractedtotheproductsoffirmsinotherindustriesConceptEyeglassesvs.ContactLensSugarvs.ArtificialSweetenersPlasticvs.Glassvs.MetalNewspapersvs.TVvs.InternetExamplesCompetitiveForceof

Substit17HowtoTellWhetherSubstituteProductsAreaStrongForceSalesofsubstitutesaregrowingrapidlyProducersofsubstitutesareplanningtoaddnewcapacityTheirprofitsareup(theircapabilitytoproducethemwithbestqualityandminorpricesincreases)HowtoTellWhetherSubsti18PrincipleofCompetitiveMarketsThecompetitivethreatofsubstitutesisstrongerwhentheyare:ReadilyavailableAttractivelypricedBelievedtohavecomparableorbetterperformancefeaturesCustomerswitchingcostsarelowPrincipleofCompetitiveMa19CompetitiveForceofSuppliersSuppliersareastrong

competitiveforcewhen:Itemmakesuplargeportionofproductcosts,iscrucialtoproductionprocess,and/orsignificantlyaffectsproductqualityItiscostlyforbuyerstoswitchsuppliersTheyhavegoodreputationsandgrowingdemandTheycansupplyacomponentcheaperthanindustrymemberscanmakeitthemselvesTheydonothavetocontend(compete)withsubstitutesBuyingfirmsarenotimportantcustomersCompetitiveForceofSuppli20PrincipleofCompetitiveMarketsSuppliersareastrongerforcethemoretheycanexercisepowerover:PriceschargedQuality/performance ofitemssuppliedAmountsanddeliverytimesPrincipleofCompetitiveMa21CompetitiveForceofBuyersBuyersareastrongcompetitiveforcewhen:Theyarelargeandpurchaseasizablepercentageofindustry’sproductTheybuyinvolumequantitiesTheycanintegratebackwardIndustry’sproductisstandardizedTheircostsinswitchingtosubstitutesorotherbrandsarelowTheycanpurchasefromseveralsellersProductpurchaseddoesnotsavebuyermoneyCompetitiveForceofBuyers22PrincipleofCompetitiveMarketsBuyersareastrongercompetitiveforcethemoretheyhaveleveragetobargainover:PriceQualityServiceOthertermsandconditionsofsalePrincipleofCompetitiveMa23StrategicImplicationsofthe

FiveCompetitiveForcesCompetitiveenvironmentisunattractive

when:RivalryisstrongEntrybarriersarelowCompetitionfromsubstitutesisstrongSuppliersandcustomershaveconsiderablebargainingpowerStrategicImplicationsoft24StrategicImplicationsofthe

FiveCompetitiveForcesCompetitiveenvironmentisideal

when:RivalryismoderateEntrybarriersarehighGoodsubstitutesdonotexistSuppliersandcustomersareinaweakbargainingpositionStrategicImplicationsoft25Question3:WhatForcesAreat

WorktoChangeIndustryConditions?IndustrieschangebecauseforcesaredrivingindustryparticipantstoaltertheiractionsDrivingforcesarethe

majorunderlyingcausesofchangingindustryandcompetitiveconditionsQuestion3:WhatForcesAr26AnalyzingDrivingForces1.Identifythoseforces

likelytoexertgreatestinfluenceovernext1-3yearsUsually

nomorethan3-4

factorsqualify2.Assess

impactWhatdifferencewilltheforcesmake(favorable?unfavorable?)AnalyzingDrivingForces1.27CommonTypesofDrivingForces(I)Changesinlong-termindustrygrowthrateChangesinwhobuystheproductandhowtheyuseitProductinnovationTechnologicalchange/processinnovationMarketinginnovationEntryorexitofmajorfirmsDiffusion(传播）

oftechnicalknowledgeCommonTypesofDrivingFo28CommonTypesofDrivingForces(II)IncreasingglobalizationofindustryChangesincostandefficiencyMarketshiftfromstandardizedtodifferentiatedproducts(orviceversa)Newregulatorypoliciesand/orgovernmentlegislationChangingsocietalconcerns,attitudes,andlifestylesChangesindegreeofuncertaintyandriskCommonTypesofDrivingFo29Question7:IstheIndustry

AttractiveorUnattractiveandWhy?Developconclusionsaboutwhethertheindustryandcompetitiveenvironmentisattractiveorunattractive,bothnear-andlong-term,forearninggoodprofitsObjectivePrincipleAfirmuniquelywell-suitedinanotherwiseunattractiveindustrycan,undercertaincircumstances,stillearnunusuallygoodprofitsQuestion7:IstheIndustry30ThingstoConsiderin

AssessingIndustryAttractivenessIndustry’smarketsizeandgrowthpotentialWhethercompetitiveconditionsareconducive（有益）torising/fallingindustryprofitabilityWillcompetitiveforcesbecomestrongerorweakerWhetherindustrywillbefavorablyorunfavorablyimpactedbydrivingforcesPotentialforentry/exitofmajorfirmsStability/dependabilityofdemandSeverityofproblemsfacingindustryDegreeofriskanduncertaintyinindustry’sfutureThingstoConsiderin

Asses31ConductinganIndustryand

CompetitiveSituationAnalysisTwothingstokeepinmind:1.Evaluatingindustryandcompetitiveconditionscannotbereducedtoaformula-likeexercise--thoughtfulanalysis

isessential2.Sweeping（彻底的）industryandcompetitiveanalysesneedtodoneevery1to3yearsConductinganIndustryand

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INDUSTRYANDCOMPETITIVEANALYSIS

CHAPTER2INDUSTRYANDCOMPETITIVEA33“Analysisisthecriticalstartingpointofstrategicthinking.”“Quote”“Analysisisthecriticalstar34ChapterOutlineRoleofSituationAnalysisinStrategy-MakingMethodsofIndustryandCompetitiveAnalysisIndustry’sDominantEconomicTraitsIndustry’sCompetitiveForcesDriversofIndustryChangeCompetitivePositionsofRivalsCompetitiveMovesofRivalsKeySuccessFactorsConclusions:OverallIndustryAttractivenessConductinganIndustryandCompetitiveAnalysisChapterOutlineRoleofSituat35GoodSituationAnalysisLeadstoGoodStrategicChoices1.Industry’sdominanteconomictraits2.Natureofcompetition&strengthofcompetitiveforces3.Driversofindustrychange4.Competitivepositionofrivals5.Strategicmovesofrivals6.Keysuccessfactors7.Conclusionsaboutindustryattractiveness(Chapter2)AssessIndustry&CompetitiveConditions1.Assessmentofcompany’spresentstrategy2.Strengths,weaknesses,opportunities,&threats3.Company’scostscomparedtorivals4.Strengthofcompany’scompetitiveposition5.Strategicissuestobeaddressed(Chapter3)AssessCompanySituation

IdentifyStrategicOptionsfortheCompanySelecttheBestStrategyfortheCompany-Competitive/BusinessUnitOptionsChapter4&otherChaptersGoodSituationAnalysisLea36Question1:WhatArethe

Industry’sDominantEconomicTraits?Marketsizeand

growthrate(Scopeofcompetitiverivalry)Numberofcompetitors

andtheirrelativesizesPrevalence(流行）

ofbackward/forwardintegrationEntry/exitbarriersNatureandpaceoftechnologicalchangeProductandcustomercharacteristicsScaleeconomiesandexperiencecurveeffectsCapacityutilizationandresourcerequirements(Industryprofitability)Question1:WhatArethe

I37TheExperienceCurveEffectAnexperiencecurveexistswhenunitcostsdeclineascumulativeproductionvolumeincreasesbecauseofAccumulatingproductionknow-howGrowingmasteryofthetechnologyThebiggertheexperiencecurveeffect,thebiggerthecostadvantageofthefirmwiththelargestcumulativeproductionvolumeTheExperienceCurveEffect38CostAdvantagesof

DifferentExperienceCurveEffects$1$9.729.512.34310%CostReduction20%CostReduction30%CostReduction1MillionUnits2MillionUnits4MillionUnits8MillionUnitsCostperUnitCostAdvantagesof

Different39Relevanceof

KeyEconomicFeaturesEconomicFeatureMarketSizeMarketgrowthrateCapacitysurpluses/shortagesIndustryprofitabilityEntry/exitbarriersProductisbig-ticketitemforbuyersStandardproductsRapidtechnologicalchangeCapitalrequirementsVerticalintegrationEconomiesofscaleRapidproductinnovationStrategicImportanceSmallmarketsdon’ttendtoattractnewfirms;largemarketsattractfirmslookingtoacquirerivalswithestablishedpositionsinattractiveindustriesFastgrowthbreedsnewentry;slowgrowthspawns（孕育）increasedrivalry&shake-outofweakrivalsSurplusespushprices&profitmarginsdown;shortagespullthemupHigh-profitindustriesattractnewentrants;depressedconditionsleadtoexitHighbarriersprotectpositionsandprofitsofexistingfirms;lowbarriersmakeexistingfirmsvulnerabletoentryMorebuyerswillshopforlowestprice(big-ticket=highprice)Buyershavemorepowerbecauseit’seasiertoswitchfromsellertosellerRaisesrisk;investmentsintechnologyfacilities/equipmentmaybecomeobsoletebeforetheywearoutBigrequirementsmakeinvestmentdecisionscritical;timingbecomesimportant;createsabarriertoentryandexitRaisescapitalrequirements;oftencreatescompetitive&costdifferencesamongfullyvs.partiallyvs.non-integratedfirmsIncreasesvolume&marketshareneededtobecostcompetitiveShortensproductlifecycle;increasesriskbecauseofopportunitiesforleapfroggingRelevanceof

KeyEconomicF40Question2:WhatisCompetitionLike&HowStrongAretheCompetitiveForces?ToidentifyMainsourcesofcompetitiveforcesStrengthoftheseforcesKeyanalyticaltoolFiveForcesModelofCompetitionObjectiveQuestion2:WhatisCompet41FiveForcesModelofCompetitionSubstituteProducts(offirmsinotherindustries)RivalryAmongCompetingSellersPotentialNewEntrantsSuppliersofKeyInputsBuyersSubstituteProducts(offirmsinotherindustries)RivalryAmongCompetingSellersPotentialNewEntrantsBargainingPowerandLeverageofSuppliersofKeyInputs

BargainingPowerandLeverageofBuyersFiveForcesModelofCompe42AnalyzingtheFiveCompetitiveForces:HowtoDoItAssessstrengthofeachcompetitiveforce(Strong?Moderate?Weak?)RivalryamongcompetitorsSubstituteproductsPotentialentryBargainingpowerofsuppliersBargainingpowerofbuyersExplainhoweachforceactstocreatecompetitivepressureDecidewhetheroverallcompetitionisbrutal,fierce,strong,normal/moderate,orweakandhowcaninfluencefutureperformanceofthecompetingcompaniesAnalyzingtheFiveCompetiti43RivalryAmongCompetingSellersUsuallythemostpowerfulofthefiveforcesCheckwhichweaponsofcompetitiverivalryaremostactivelyusedbyrivalsinjockeying（嗣机寻找）forpositionPriceQualityPerformancefeaturesofferedCustomerserviceWarranties/guaranteesAdvertising/promotionsDealernetworksProductinnovationRivalryAmongCompetingSel44WhatCausesRivalrytoBeStronger?SlowmarketgrowthCostsmoretogetoutofbusinessthantostayin(Exitbarriers)Industryconditionstempt（诱惑）somefirmstogoontheoffensivetoboostvolumeandmarketshare(ScaleEconomiesorLearningCurvetobeachieved)Asuccessfulstrategicmovecarriesabigpayoff（决定性招数）Oneormorefirmsinitiatesmovestobolster（支持）theirstandingatexpenseofrivalsCustomershavelowcostsinswitchingbrandsLotsoffirms,moreequalinsizeandcapabilityFirmshavediversestrategies,corporatepriorities,resources,andcountriesoforiginWhatCausesRivalrytoBe45CompetitiveForceofPotentialEntrySeriousnessofthreatdependsonAttractivenessoftheindustryforthenewentrantBarrierstoentryReactionofexistingfirmstoentryBarriersexistwhenNewcomersconfrontobstaclesEconomicfactorsputpotentialentrantatadisadvantagerelativetoincumbentfirmsCompetitiveForceofPotent46CommonBarrierstoEntryEconomiesofscaleInabilitytogainaccesstospecializedtechnologyExistenceoflearning/experiencecurveeffectsStrongbrandpreferencesandcustomerloyaltyCapitalrequirementsand/orotherspecializedresourcerequirementsCostdisadvantagesindependentofsizeAccesstodistributionchannelsRegulatorypolicies,tariffs,traderestrictionsCommonBarrierstoEntryEco47PrincipleofCompetitiveMarkets

Threatofentryisstrongerwhen:EntrybarriersarelowSizablepoolofentrycandidatesexistsIncumbentsareunwillingorunabletocontestanewcomer’sentryeffortsNewcomercanexpecttoearnattractiveprofitsPrincipleofCompetitiveMa48CompetitiveForceof

SubstituteProductsSubstitutes

matterwhencustomersareattractedtotheproductsoffirmsinotherindustriesConceptEyeglassesvs.ContactLensSugarvs.ArtificialSweetenersPlasticvs.Glassvs.MetalNewspapersvs.TVvs.InternetExamplesCompetitiveForceof

Substit49HowtoTellWhetherSubstituteProductsAreaStrongForceSalesofsubstitutesaregrowingrapidlyProducersofsubstitutesareplanningtoaddnewcapacityTheirprofitsareup(theircapabilitytoproducethemwithbestqualityandminorpricesincreases)HowtoTellWhetherSubsti50PrincipleofCompetitiveMarketsThecompetitivethreatofsubstitutesisstrongerwhentheyare:ReadilyavailableAttractivelypricedBelievedtohavecomparableorbetterperformancefeaturesCustomerswitchingcostsarelowPrincipleofCompetitiveMa51CompetitiveForceofSuppliersSuppliersareastrong

competitiveforcewhen:Itemmakesuplargeportionofproductcosts,iscrucialtoproductionprocess,and/orsignificantlyaffectsproductqualityItiscostlyforbuyerstoswitchsuppliersTheyhavegoodreputationsandgrowingdemandTheycansupplyacomponentcheaperthanindustrymemberscanmakeitthemselvesTheydonothavetocontend(compete)withsubstitutesBuyingfirmsarenotimportantcustomersCompetitiveForceofSuppli52PrincipleofCompetitiveMarketsSuppliersareastrongerforcethemoretheycanexercisepowerover:PriceschargedQuality/performance ofitemssuppliedAmountsanddeliverytimesPrincipleofCompetitiveMa53CompetitiveForceofBuyersBuyersareastrongcompetitiveforcewhen:Theyarelargeandpurchaseasizablepercentageofindustry’sproductTheybuyinvolumequantitiesTheycanintegratebackwardIndustry’sproductisstandardizedTheircostsinswitchingtosubstitutesorotherbrandsarelowTheycanpurchasefromseveralsellersProductpurchaseddoesnotsavebuyermoneyCompetitiveForceofBuyers54PrincipleofCompetitiveMarketsBuyersareastrongercompetitiveforcethemoretheyhaveleveragetobargainover:PriceQualityServiceOthertermsandconditionsofsalePrincipleofCompetitiveMa55StrategicImplicationsofthe

FiveCompetitiveForcesCompetitiveenvironmentisunattractive

when:RivalryisstrongEntrybarriersarelowCompetitionfromsubstitutesisstrongSuppliersandcustomershaveconsiderablebargainingpowerStrategicImplicationsoft56StrategicImplicationsofthe

FiveCompetitiveForcesCompetitiveenvironmentisideal

when:RivalryismoderateEntrybarriersarehighGoodsubstitutesdonotexistSuppliersandcustomersareinaweakbargainingpositionStrategicImplicationsoft57Question3:WhatForce