Selected industry Environment and business Strategy choices.
First of all we have to select an industry then we study the environment of that industry by findings.
1) Opportunities.
2) Threats
Which business strategy will be used depends on environment in which we are going to operate. We have to match our strength and weaknesses with opportunities and threats in environment. (Swat analysis complete at this stage)
Competitive Advantages in Emerging industries.
Competitive Advantages in Emerging industries are newly formed or refund industries.
For example fiber internet browser, solar heating and telecommunication industries.
Competitive Advantages in Emerging industries:
- ability to shape the industry structure
- ability to rapidly improve product quality.
- Relationship with key suppliers.
- Ability to forecast/ predict future competition.
Competitive advantages in Transition to industry Maturity:
Advantages:
- Focus on product line
- Emphasize on prcess innovation
- Emphasize on cost reduction
- International expansion.
Competitive advantage in maturity and Decline period/ Decline Industry:
Advantages for maturity to Decline.
1). Focuses on segments.
2). Emphasize product innovation and quality improvement.
3). Gradually harvest the business.
Competetive advantages in segmented industry:
A fragmented industry is one in which no firm has a significant market share and can not strongly influence industry outcomes.
Competitive advantages:
- Low cost.
- Differentiation.
- Focus on market
Competitive Advantage in Global industry:
Licensing---> Contracts ---->Agrements.
Experiance ---> Staff management.
