Answer Happy

Industry Analysis - Characteristics of the competitive environment that are industry specific. Porter's Five Forces Model: Responses should be low, moderate, or high with explanation. Low Moderate High Force Threat of New Entrants Threat of Substitutes Bargaining Power of Suppliers Bargaining Power of Buyers Rivalry Among Competitors Competitor Analysis - The gathering of data and information to better understand and anticipate competitors' objectives, strategies, assumptions, and capabilities. - What drives the competitor, as shown by its future objectives? - What the competitor is doing and can do, as revealed by its current strategy? - What the competitor believes about the industry, as shown by its assumptions? - What the competitor's capabilities are, as shown by its strengths and weaknesses? Internal Analysis Identify the focal firm's resources and capabilities (see Chapter 3 for examples). Tangible Resources Intangible Resources Capabilities What are the firms core competencies - which capabilities serve as a source of competitive advantage?