Evaluating a firm's external environment - industry structure and environmental opportunities
11 important questions on Evaluating a firm's external environment - industry structure and environmental opportunities
What are the opportunities in the fragmented industry?
What are the opportunities in the emerging industry?
What are the opportunities in the mature industry?
- Product refinement
- investment in service quality
- process innovation
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What are the opportunities in the declining industry?
- Leadership
- niche
- harvest
- divestment
What are the four conditions for an empty core industry?
- Capacity is added in large increments, relative to demand
- there are large unavoidable sunk costs
- demand fluctuates in difficult to predict ways
- limited product differentiation
What are fragmented industries?
What is the consolidation strategy?
What are the characteristics of mature industries?
- Slowing growth in total industry demand
- the development of experienced repeat customers
- a slowdown in increases in production capacity
- a slowdown in the introduction of new products and services
- increase in the amount of international competition
- overall reduction of profitability of firms in the industry
What is a declining industry?
What is the harvest opportunity in the declining industry?
What is the divestment opportunity in the declining industry?
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