Quản trị kinh doanh - Further topics in industry and competitive analysis

Further Topics in Industry and Competitive Analysis Extending 5-forces analysisDoes industry matter?ComplementsDynamic competitionGame TheoryCompetitor AnalysisSegmentationStrategic GroupsOUTLINEDoes Industry Matter? Percentage of variance in firms’ return on assets explained by: Industry effectsFirm-specific effectsUnexplained varianceSchmalensee (1985)19.6%0.6%80.4%Rumelt (1991)4.0%44.2%44.8%McGahan & Porter 1997)18.7%31.7%48.4%Hawawini et al (2003)8.1%35.8%52.0% The Value NetCOMPANYCUSTOMERSSUPPLIERSCOMPLEMENTORSCOMPETITORSSUPPLIERSPOTENTIALENTRANTSSUBSTITUTESBUYERSINDUSTRYCOMPETITORSRivalry amongexisting firmsBargaining power of suppliersBargaining power of buyersThreat ofnew entrantsThreat ofsubstitutesCOMPLEMENTSThe suppliers of complements create value for the industry and can exercise bargaining powerFive Forces or Six? Introducing ComplementsDynamic CompetitionPorter framework assumes:industry structure drives competitive behaviorIndustry structure is (fairly) stable.But, competition also changes industry structure:Schumpeterian Competition: A “perennial gale of creative destruction” where firm strategies continually transforms industry structure innovation overthrows established market leadersHypercompetition: “intense and rapid competitive moves.creating disequilibrium through continuously creating new competitive advantages and destroying, obsolescing or neutralizing opponents’ competitive advantagesImplication: Under dynamic competition, 5-forces framework isless useful—Competitive behavior and industry structure jointly determined by underlying conditions of technology, demand & costs The Contribution of Game Theory to Competitive AnalysisMain value:Framing strategic decisions as interactions between competitorsPredicting outcomes of competitive situations involving a few, evenly-matched playersSome key concepts:Competition and Cooperation—Game theory can show conditions where cooperation more advantageous than competitionDeterrence—changing the payoffs in the game in order to deter a competitor from certain actionsCommitment—irrevocable deployments of resources that give creditability to threatsSignaling—communication to influence a competitor's decisionProblems of game theory:Useful in explaining past competitive behavior—weak in predicting future competitive behavior.What’s the problem? — Multitude of models, outcomes highly sensitive to small changes in assumptions PREDICTIONS What strategy changes will the competitor initiate? How will the competitor respond to our strategic initiatives?OBJECTIVESWhat are competitor’s current goals?Is performance meeting there goals?How are its goals likely to change?STRATEGYHow is the firm competing?ASSUMPTIONSWhat assumptions does the competitorhold about the industry and itself?RESOURCES & CAPABILITIESWhat are the competitors’ key strengths and weaknesses? A Framework for Competitor AnalysisSegmentation Analysis: The Principal Stages Identify key variables and categories.Construct a segmentation matrixAnalyze segment attractivenessIdentify KSFs in each segmentAnalyze benefits of broad vs. narrow scope.Identify segmentation variablesReduce to 2 or 3 variablesIdentify discrete categories for each variablePotential for economiesof scope across segmentsSimilarity of KSFsProduct differentiation benefitsof segment focusOpportunities forDifferentiationCharacteristics of the BuyersCharacteristics of the ProductIndustrial buyersHousehold buyersDistribution channelGeographicallocationSizeTechnical sophisticationOEM/replacementDemographicsLifestylePurchase occasionSizeDistributor/brokerExclusive/ nonexclusiveGeneral/special listPhysical sizePrice levelProduct featuresTechnology designInputs used (e.g. raw materials)Performance characteristicsPre-sales & post-sales services The Basis for Segmentation: Customer and Product CharacteristicsOpportunities forDifferentiationCharacteristics of the BuyersCharacteristics of the ProductIndustrial buyersHousehold buyersDistribution channelGeographicallocation*Size*Technical sophistication*OEM/replacement*Demographics*Lifestyle*Purchase occasion*Size*Distributor/broker*Exclusive/ nonexclusive*General/special list*Physical size*Price level*Product features*Technology design*Inputs used (e.g. raw materials)*Performance characteristics*Pre-sales & post-sales servicesSegmenting the European Metal Can IndustrySegmenting the World Automobile Market REGION US& Canada W.Europe E.Europe Asia Lat America Australia AfricaLuxury CarsFull-size sedansMid-size sedansSmall sedansStation wagonsPassenger minivansSports carsSport-utilityPick-up trucks 0 5 0 10 15 20 25%100%Share of industry revenueAuto loansLeasing WarrantyGasolineAuto insuranceAftermarket partsAuto rentalOperating marginAuto manufacturingNew car dealersUsed car dealersService & repairVertical Segmentation & Industry Profit Pools—The US Auto IndustrySEGMENTLow price bicycles sold primarily through department and discount stores, mainly under the retailer’sown brand (e.g. Sears’ “Free Spirit”);KEY SUCCESS FACTORS* Low-costs through global sourcing of components & low-wage assembly.* Supply contract with major retailer.Leading competitors: Taiwanese & Chinese assemblers,some U.S manufacturers, e.g. Murray Ohio, HuffyMedium-priced bicycles sold primarily under manufacturer’s brandname and distributed mainly throughspecialist bicycles stores;*Cost efficiency through large scale operation and either low wages or automated manufacturing.*Reputation for quality (durability, reliability) through effective marketing to dealers and/or consumers.* International marketing & distribution.Leading competitors: Raleigh, Giant, Peugeot, Fuji*Quality of components and assembly, Innovation in design (e.g. minimizing weight and wind resistance).*Reputation (e.g. through success in racing, through effective brand management).*Strong dealer relations.Similar to low-price bicycle segment.High-priced bicycles for enthusiasts.Children’s bicycles (and tricycles) soldprimarily through toy retailers (discount toy stores, department stores, and specialist toy stores). Segmentation and Key Success Factors in the U.S. Bicycle IndustryStrategic Group AnalysisA strategic group is a group of firms in an industry following the same or similar strategy. Identifying strategic groups: Identify principal strategic variables which distinguish firms. Position each firm in relation to these variables. Identify clusters.BroadPRODUCTRANGE NarrowNationalGEOGRAPHICAL SCOPEGlobalNATIONALLY- FOCUSED, SMALL, SPECIALIST PRODUCERS e.g., Bristol (U.K.), Classic Roadsters (U.S.), Morgan (U.K.)NATIONALLY FOCUSED, INTERMEDIATE LINE PRODUCERS e.g. Tofas, Proton, MarutiFirst Auto Works (China)REGIONALLY-FOCUSED BROAD-LINE PRODUCERS e.g. Fiat, PSA, Renault, Kia, PERFORMANCE CAR PRODUCERS e.g., Porsche, Ferrari (owned by Fiat) Maserati, LotusLUXURY CAR MANUFACTURERSe.g., Aston Martin, BMW, Rolls Royce (owned by VW)GLOBAL SUPPLIERS OF NARROW MODEL RANGE e.g., Subaru, Isuzu, Suzuki, Saab, Hyundai, DaihatsuGLOBAL, BROAD-LINEPRODUCERS e.g., GM, Ford, Toyota, Nissan, Honda, VW, DaimlerChrysler Strategic Groups in the World Automobile IndustryGeographical Scope0 10 20 30 40 50 60 70 80Vertical Balance0 0.5 1.0 1.5 2.0NATIONALPRODUCTION COMPANIESINTEGRATED INTERNATIONAL MAJORSNATIONALLY-FOCUSEDDOWNSTREAM COMPANIESINTEGRATED DOMESTICOIL COMPANIESRoyal Dutch-Shell Gp.Exxon-MobilStatoilPDVSAKuwait PetroleumPetronasPetrobrasRepsolNipponSunocoBP-AmocoChevronTexacoPhillipsPemexIndian OilENIINTEGRATED OIL MAJORSINTERNATIONALUPSTREAM,REGIONALLYFOCUSEDDOWNSTREAMIranNOCNesteAshlandConoco PhillipsENIElf-Fina-TotalRepsol YPFINTERNATIONALDOWNSTREAM OIL COMPANIESINTERNATIONALUPSTREAMCOMPANIESDana PetroleumPremierOilPetroChinaLukoilApacheValero Strategic Groups Within the World Petroleum Industry