situation analysis
DESCRIPTION
Situation Analysis. Hierarchy of External Influences. P olitical/Legal E conomic S ocio-Cultural T echnical G lobal. Remote Environment. Competitive Environment. Firm. Five Forces Competitors Industry Structure Strategic Groups Political/Legal. Industry Vital Statistics. - PowerPoint PPT PresentationTRANSCRIPT
Page 1
Situation Analysis
Page 2
Hierarchy of External Influences
Firm
• Political/Legal• Economic• Socio-Cultural• Technical• Global
• Five Forces• Competitors• Industry Structure• Strategic Groups• Political/Legal
Page 3
Industry Vital Statistics
•Industry scope: How is the industry defined? What are its boundaries?
•General: Size, growth rate
•Key Players: Rivals, customers, suppliers, government agencies
•Structure: Fragmented vs. concentrated; vertically integrated, etc.
•Performance: Profit levels, trends, distribution of, variability of
Page 4
Life Cycle Stage
Growth is GoodG
row
th R
ate
Time
Page 5
Innovation Cycle Time
Slow is good, unless you’re the one driving innovationG
row
th R
ate
Timet1 t2 t3
Page 6
Concentrated Structure
Dominant Player
No. 2
Fringe Players
Concentrated is good, if you’re No. 1 or No. 2 …or, if you’re a smaller player in a protected niche
Page 7
Fragmented Structure
No Dominant Player
No Clear No. 2
MultiplePlayers
Fragmented is good, if you’ve got the best strategy/technology
Page 8
Threat of Substitute Products
Threat of Substitute Products
Threat of
New Entry
Threat of
New Entry
Bargaining Power
of Buyers
Bargaining Power
of Buyers
Bargaining Power
of Suppliers
Bargaining Power
of Suppliers
(+) or (-) or no influence on...
Profit = (P – C) x Qty.
Intensityof
Rivalry
Intensityof
Rivalry
Porter’s Five-Forces of Industry Analysis
Page 9
Plays out in the following ways:
** Jockeying for strategic positionJockeying for strategic position
** Price competitionPrice competition
** Advertising wars -- Coke vs. PepsiAdvertising wars -- Coke vs. Pepsi
** New product introductions – Cheerios cereal (14 types)New product introductions – Cheerios cereal (14 types)• Regular Cheerios• Apple-Cinnamon Cheerios• Honey-Nut Cheerios• Frosted Cheerios• Three-Grain Cheerios• Cheerios with Berries (blueberry, strawberry, banana, mixed)• Yogurt Cheerios (vanilla or straw) • Fruity Cheerios (like Fruit Loops, only healthier)
** Increasing consumer warranties or serviceIncreasing consumer warranties or service
Intensity of Rivalry Among Existing CompetitorsIntensity of Rivalry Among Existing Competitors
Page 10
Situation Analysis Summary Grid
Serious Mild Mild GreatThreat Threat No Impact Opportunity Opportunity
Economics
Technology
Remote Socio-Cultural
Environment Political-Legal
Global
Environment
Demographics
New Entrants
Competitive Substitutes
Environment Buyers-Customers
Suppliers
Rivalry
TOTAL IMPACT
Page 11
Situation Analysis – Newspapers
Serious Mild Mild GreatThreat Threat No Impact Opportunity Opportunity
Economics
Technology
Remote Socio-Cultural
Environment Political-Legal
Global
Environment
Demographics
New Entrants
Competitive Substitutes
Environment Buyers-Customers
Suppliers
Rivalry
TOTAL IMPACT
Strategic Map
Strategic Dimension / Coordinate #1
Str
ate
gic
Dim
en
sio
n
/ C
oord
inate
#2
Strategic Map: Beer
(Pre-light / Pre-microbrew)
Dark/Full
Light
Low Price High Price
Amber
Regular
Strategic Map: Beer
(Current)
Old Swill
GuinnessBlackened Voodoo
Anchor Porter
AmstelCardinal
Miller LiteBud Light
Sam Adams Bass Ale
Pilsner Urquell
Killian’s RedRed Wolf
Amber Bock
Lowenbrau
Killian’s Brown Lowenbrau Dark
Milwaukee’s Best Light
BudMiller
Dark/Full
Light
Low Price High Price
Amber
Regular
Strategic Map: Beer-like Beverages?
Mike’s Hard
Lemon
WoodchuckCider
SmirnoffIce
NewStrategic
Dimension
Dark/Full
Light
Low Price High Price
Amber
Regular
GuinnessBlackened Voodoo
Anchor Porter
Sam Adams Bass Ale
Pilsner Urquell
Killian’s RedRed Wolf
Milwaukee’s Best Light
BudMiller
Situation Analysis of Coffee Industry
Major Rivals:
Major Products:
Customer Segments:
OtherCharacteristics:
Page 17
Serious Mild Mild GreatThreat Threat No Impact Opportunity Opportunity
Economics
Technology
Remote Socio-Cultural
Environment Political-Legal
Global
Environment
Demographics
New Entrants
Competitive Substitutes
Environment Buyers-Customers
Suppliers
Rivalry
TOTAL IMPACT
Situation Summary Grid –Coffee Industry
Strategic Dimension #1
Str
ate
gic
Dim
en
sio
n
#2
Strategic Map of Coffee Industry
Don’t use Priceas a dimension