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Notes On Business Strategy

The document outlines various factors influencing businesses, including demographic, socio-economic, technological, political, economic, global, and physical environment segments. It discusses strategic groups within industries, the importance of scanning and forecasting for future business strategies, and the benefits of complementary products. Additionally, it explains Porter's Five Forces framework to assess industry competitiveness and suggests strategies for companies to navigate these challenges.

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frome44
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13 views4 pages

Notes On Business Strategy

The document outlines various factors influencing businesses, including demographic, socio-economic, technological, political, economic, global, and physical environment segments. It discusses strategic groups within industries, the importance of scanning and forecasting for future business strategies, and the benefits of complementary products. Additionally, it explains Porter's Five Forces framework to assess industry competitiveness and suggests strategies for companies to navigate these challenges.

Uploaded by

frome44
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Video 1

Demographic

-age structures

-low or high population density

-Detroit has people moved out of houses so less new businesses

-diversity

Socio

-Changing values such as more women working in the workforce

Technological segment

-It’s always changing such as communication and record keeping

-John Deere technology shows exactly where to plant; cars run on


computers; zoom; use the right technology for your business

Political/legal segment

-Southwest airlines Erb Keller had to lobby to change laws

-How can you work within the system; try to lobby to make changes to the
system

Economic segment

-Interest rates go up and growth goes down

Global segment

-fish in Iceland that was plentiful and traded with China

-informal economy (babysitter or trading garden food)

Physical environment

-Hurricane in Houston; led to no gas in nearby area but led to increase in


demand in lumber

-Will a package explode with change in altitude

-Wind energy in flat areas;

-solar energy
Identify the top 3 of these things of the general environment that could
influence your company and how understanding it can help in that company?

Video 2 Strategic groups

-Similar companies that have the same strategy; rival companies

-Fast food vs sit down restaurants

-Fast casual food

-Technology developers and producers

-They all share similar Resources, strengths, weaknesses and capabilities

What stretigc gourps are in your industry; how to categorize them nationally
vs locally; describe how they interact.

Video 3 Predict the future to improve your business strategy: scanning,


monitoring, forecasting and assessing

Scanning

-look for things that are changing in the industry such as commodity prices

Monitoring

-Pay attention to trends such as prices

-Pay attention to the laws changing or cultural changes

Forecasting

-Predict what could happen in the future

-When the feds change interest rates, home builders react to that

Assessing

-What do these things do for us to make changes in our company

What changes are happening that could affect your company/industry and
what changes can a company make to take advantage of them?
Video 4 You company can sell more if you use complementary products!

-Pizza and soda, cereal and milk, car insurance with cars

-Frito lay and pepsi are together now

-Partner with others who do sell a complimentary service to your own;such as


coke products are at Disney but not pepsi

What complimentary services go with what I sell and what ideas can increase
customer experience through selling compliments?

Video 5 Porter’s 5 Forces: A Guide to YOUR industry

-Threat of new entrants, Rivarly among competing firms, Bargaining power of


buyers, threat of substitute products, bargaining power of suppliers

-Delta and frontier have different strategies

Bargaining power of suppliers

-Can determine price to buyers, can make supplies less quality for same
price.

-More powerful if suppliers become competitor to their buyers

Bargaining power of buyers

-Their power goes up when they can buy from many different companies or if
a supplier can only supply to just a few companies

-A baker starts making their own flour so the flour supplier becomes a
weaker bargainer

Threat of New Entrants

-Can all companies make money still

-What are some barriers to entering industry; window washing company vs


airline company

Threat of Substitutes

-Milk is a substitute for soda


-DIY is a substitute for cleaning service

-To prevent a threat, provide great quality, lower prices, better branding,
better service

Strength of Rivalry

-strengthens when one loses customers to the other

-Rivalry intensifies with: well-balanced competitors, slow industry growth,


high fixed costs, difficult to differentiate between products, strategic stakes
are high.

-competitor intelligence

-Sources of competitor intelligence include: Press releases, news


reports, financial releases, product announcements

-Attractive industry has high entry barriers, low rivalry, few substitutes
available, suppliers have low bargaining power, buyers have low bargaining
power

Tips: To neutralize supplier power, standardize what you buy so you can find
other suppliers if necessary. To neutralize buyer power, expand or improve
services so that your offering is better than rivals. To neutralize rivalry, invest
in making your own products different/better (price or quality). To scare off
new entrants, increase the cost of competing, such as more R&D toward
innovation or increasing economies of scale. To limit the threat of substitutes,
offer better value through convenience.

For your company come up with strategies that fit your industry.

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