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Session 1 Business Environment

This document discusses competitive strategy and strategic management. It covers Porter's Five Forces model, strategic groups, Porter's value chain, and Porter's generic strategies. Key points include how competition can be identified and measured, the importance of understanding competitors' current strategies, future goals, and vulnerabilities. Successful managers shape their competitive environment rather than just reacting to it. Strategic groups are groups of firms following similar strategic dimensions. Porter's generic strategies are differentiation, cost leadership, and focus.

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Ashish Kumar
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41 views

Session 1 Business Environment

This document discusses competitive strategy and strategic management. It covers Porter's Five Forces model, strategic groups, Porter's value chain, and Porter's generic strategies. Key points include how competition can be identified and measured, the importance of understanding competitors' current strategies, future goals, and vulnerabilities. Successful managers shape their competitive environment rather than just reacting to it. Strategic groups are groups of firms following similar strategic dimensions. Porter's generic strategies are differentiation, cost leadership, and focus.

Uploaded by

Ashish Kumar
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPT, PDF, TXT or read online on Scribd
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Competitive Structure of Industries

and Strategic Mgmt


- Omdeep Gupta
Learning Objective
• Competitive Strategies
– Porter’s Five Forces Model
– Strategic Groups
– Porter’s Value Chain
– Porter’s Generic Strategies
Competition

Competition is about creating a barrier to entry

Competition can be identified using “perception


mapping” or “brand switching behaviour”

It can be measured through “cross price elasticity of


demand”

Competitive analysis is used in order to adapt or


influence competition
What should you know
about your competitor?
Who are the competitors of the firm?

Their current strategies?

Their future goals and likely strategies?

What drives the competitors?

Where is the competitor vulnerable?

How they will react in various scenarios?


Strategic Groups
• The competitive environment and competitive
strategies of different firms within an industry
may vary.
Strategic Group:
“ A strategic group is the group of firms in
an industry following the same or similar
strategy among the strategic dimensions”
Successful mangers do more than simply react to
this environment; they act in ways that actually
shape of enact the organisation’s competitive
environment.

-Michael E Porter
What should you do?

Current
Future Goals Assumptions Capabilities
Strategy
• It may help • The • Knowing the • Analysis of
to predict its competitor’s key operative Strength and
reaction to assumption strategies Weaknesses
strategic about itself
changes • Competitor’s
assumption
about
industry and
other
companies
Porter’s Generic Strategies
• Differentiation
• Cost Leadership
• Focus

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