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External Analysis, member, Toyota, 1616086372670, analyze the macro…

- - - - innovation
      - business
  - - - regional
      - national
      - state
      - local
    - - stability
      - security
      - corruption
- - - - has above average profitability
      - New firms will be attracted, get in the industry
      - increase competition、lower profitability
    - - Natural Entry Barriers
        
        Potential entrants fear retaliation from firms
    - - Scale Economies
        
        Ex.the family of cars
        
        cheaper to produce car models than separately designing each type of car.
      - Product Differentiation
        
        Customers are loyal to some existing products/brands
        
        It's difficult for new entrants to win over customers
      - Capital Requirements
        
        Ex.new semiconductor plant new aircraft
        
        Making investments become difficult if they're risky&irreversible
        
        A big investment
      - Expected Retaliation
        
        expected to respond to entry with aggresive pricing/advertising/new products
- - - - you have to be very very attuned to the regulatory environment
    - - You've got to step back and hear the weak signals
  - - - The key is to evolve and really embrace the change
- - - - Determine which characters belong to one of these five powers
- - - - undifferentiated
      - perishable commodity
        
        cost very little to add a passenger
        
        empty seats are simply lost revenue
      - low entry barriers
      - constant competition from new company
        
        undermines airline industry profitability
  - - - high entry barriers
        
        requires significant and risky R&D investment
      - highly differentiated
        
        patent-protected
        
        no incentive for price competition
      - Drug purchase decisions are highly fragmented
      - Most of the supplies are commodities
        
        suppliers exert very little bargaining power
- - - - 10% market share
        
        each of the top four firms
      - 40% market share
        
        four-firm concentration ratio
    - - a monopolist
        
        the maximum HHI is a 100 sruared
        
        the minimum is 0
- - - - incorrectly identified the cola and pepsi
    - - our sense of taste and smell are not completely objective
      - We are influenced by what our brain tells us to expect
      - we begin to taste it even before we actually taste it
- - - - 2. help managers make decision about strategic management.
        
        （resources allocation、entry、divestment.....) ex:Toyota
      - 3. where and how can intervene strategically to improve attractiveness and profitability?
        
        know about your industry
        
        industry effects alone account for about 21%
      - 1. how attractive?
        when profitable?
        
        “industry” is
        
        a nested concept (define it narrowly or broadly)
        
        analysis is important
        
        it's a powerful tool provide deep insights
      - 4. identify which industry is most profitable?
        
        “structure、conduct、performance” paradigm
        
        structure effect performance,
        performance effect economic profits
        
        5 force framework
        
        clear about which industry is analysising and identify the role of different players
        
        rivalry among industry firm
        
        threat of substitute
        
        threat of new entrants
        
        bargin power of buyers
        
        bargin power of suppliers
- - - - Western values
      - Western lifestyles