1 - In the five force model what kind of factors will influence the degree of current/existing competition?
- The degree of existing rivalry - Determined by number of firms, relative size, degree of differentiation between firms, demand conditions, exit barriers.
- Threat of potential entrants - Determined by attractiveness of industry, height of entry barriers (e.G., start-up costs, brand loyalty, regulation, etc.)
- Bargaining power of suppliers -Determined by number of suppliers and their degree of differentiation, the portion of a firm's inputs obtained from a particular supplier, the portion of a supplier's sales sold to a particular firm, switching costs, and potential for vertical integration.
- Bargaining power of buyers - Determined by number of buyers, the firm's degree of differentiation, the portion of a firm's inputs sold to a particular buyer, the portion of a buyer's purchases bought from a particular firm, switching costs, and potential for vertical integration.
- Threat of substitutes - Determined by number of potential substitutes, their closeness in function and relative price.
2 - In the five force model what kind of factors will influence the degree of bargaining power of supplier?
- Number of suppliers and degree of differentiation
- The portion of a firm's inputs obtained from particular supplier
- The portion of a supplier's sales sold to a particular firm
- Switching cost
- Potential for vertical integration
3 - List First-Mover advantages and disadvantages
- Brand loyalty and technological leadership
- Preemption of scarce assets
- Exploiting buyer switching costs
- Reaping increasing returns advantages.
- High research and development expenses
- Undeveloped supply and distribution channels
- Immature enabling technologies and complements
- Uncertainty of customer requirements
4 - If you are a new company want to enter one industry how do you reduce the entry barriers for new player?
- Technological change in markets - impact of disruptive technologies
- Removal of statutory barriers - market liberalisation
- Globalization of market - increasing competition
5 - If you adapt the qualitative approach, what 3 typesyou need to screen questions?
- Role of customer -who is our target customer/how big the market/compatibility of Ease of use for customers/ Distribution and pricing
- Role of capabilities - Exiting/competitors/ Future Capabilities
- Project time and cost - Timing/Cost factors
6 - Explain the concept of strategy intent
Strategic intent is a long-term goal that is ambitious, builds upon and stretches firm's core competencies, and draws from all levels of organization. Typically looks 10-20 years ahead, establish clear milestones.