what are porters five forces?
threat of entry, threat of substition, supploier power, buyer power, competitive rivlary
porter five forces is ___ analysis
external
what is the 1st goal of industry analysis
asses industries with great potential competitive advantage
entry barriers, exit barriers, switching costs are examples of
bargaining power
define entry barriers:
conditions that make it difficult to enter an industry
define exit barrier:
conditions that make it difficult to leave an industry
define switching costs:
factors that make it difficult to change suppliers and buyers
define bargaining power
the extent to which an actor can make another perform an action
i want ___ rivalry, ____ entry barriers, _____ exit barriers, ______ switching costs, ____ complements
less rivalry, higher entry barriers, lower barriers, lower switching costs, more complements
2nd goal is?
once industry established, position firm within industry to maximize competitive adv
focus on ____and ____
cost leadership and product differentiation
define red ocean
known market space where the market niche has lots of competition
define blue ocean
market spaces that do not exist today
internal analysis is a ___ based view
resource
what is the goal of internal analysis?
identify the resources that lead to sustainable competitive advantage
inputs and assets that the firm posses or control are __
resources
define capabilities:
the ability to perform a task by combining and coordinating resources
define core competence
some combination of capabilities that distinguishes the firm from others
sustainable competition advantage:
a long term compeitive adv that is easily replicated by competitors
resources that have the potential to be a competitive adv have to be
rare, valuable, durable, inimitable
resources that have potential to be a sustainable competitive adv have to also be
tacit, path dependent, socially complex, causally ambiguous
what makes you valuable as a knowledge personality for resources and capabilities?
appearance, experience, knowledge
sustainable competitive advantage
experience and knowledge
define core rigidities
focusing so hard on one thing you forget everything else
