Strategic Management Industry Analysis (Page 10 of 14) in pdf

Strategic Management Industry Analysis Page 10

STRATEGIC MANAGEMENT

INDUSTRY ANALYSIS

NOTES

PROFITABILITY OF US INDUSTRIES

Median return on equity (%), 1999-2007

Pharmaceuticals

21.0

Petroleum refining

20.0

Tobacco

19.7

Food Consumer Products

19.5

Medical Products & Equipment

17.7

Apparel

14.4

Computer Software

14.0

Health Care

13.1

Hotels, Casinos and resorts

12.7

Furniture

9.9

Motor Vehicles & Parts

9.3

Forest and Paper Products

6.6

Telecommunications

5.8

Airlines

(12.6)

DKD

Source: Grant (2009)

INDUSTRY ANALYSIS

Industry segmentation/Strategic mapping

Strategic group characteristics,

attractiveness

Likely impact of macroenvironmental

changes

Implications for strategy

DKD

TRENDS INFLUENCING INDUSTRY

STRUCTURE

POTENTIAL

Shifts in industry

Decline in economies of scale

growth

Emergence of switching costs

ENTRANTS

Change in mix

Emergence of new distribution

between fixed and

channels

variable costs

Commoditization

Industry consolidation

Regulation/deregulation

New entry

COMPETITORS

SUPPLIERS

BUYERS

Concentration or

RIVALRY

Concentration/fragmen

fragmentation of

tation of buyers

suppliers

Improvements in buyer

Increased forward

information

SUBSTITUTES

integration by suppliers

Shifts in customer

Improvements in supplier

tastes

Emergence of new

information

Backward integration

substitutes

Surge in demand/supply

Surge/decline in

Improvements in price-

DKD

demand

performance of substitute

Page 10

Strategic Management Industry Analysis Page 10

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