MGMT 365 Management Seminar Chapter 3

Place the three frameworks used in industry analysis in the order they should be used, with the first at the top.

1. PESTEL analysis 2. Porter's five forces 3. Strategic group mapping

PESTE is framework that categorizes and analyzes 6 external factors which are:

1.Political factors 2.Economic factors 3.Sociocultural 4.Technological 5.Ecological 6.Legal

Porter 5 force

Competitive rivals, Threats new market entrants, Suppliers power, Buyers power, and Threats of substitute products influence a company's profitability.

A situation in which separate companies become one is called -

Consolidation

Industry that has a large number of small sized companies with no influence on the industry is called -

Fragment industry

Complement affects a company are -

Helps increase the demand and add value to the product

Exit barriers, strategic commitments, and competitive industry structure are important factors in determining the _____________.

Intensity of rivalry

Industry-specific factors known as ______ separate one strategic group from another.

Mobility barriers

The intensity with which companies in an industry jockey for market share and profitability is known as ______.

Rivalry

A(n) ______ group is a set of companies within a specific industry that seek to achieve competitive advantage in similar ways.

Strategic

According to Porter's model, which of the following should be considered when analyzing a firm's competition? (Check all that apply.)

o Buyers o Suppliers o The threat of substitutes