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Business Strategy 2, group 10, electric and hybrid car , solar and battery…

- - - - It might increase the profit, or decrease the profit.
    - - Competing with complement producers.
  - - - PESTEL Framework
    - - Industry Life Cycle
  - - - better cost structure
      - more innovative or value providing
      - meets similar needs
      - improving quickly in cost/performance
    - - product is not important for buyer quality or performance
      - few switching cost for buyer
      - product is large % of cost/income for buyer
      - buyers can backward integrate
    - - fixed/storage costs are high
      - demand growth is slow
      - product differentiation is low
      - over-capacity is high
      - industry concentration is low
      - exit barriers are high
    - - suppliers can forward- integrate
      - the supplier's products is important for the focal industry
      - suppliers face few substitutes products
      - suppliers products are differentiated or present high switching costs
    - - Excepted Retaliation
        
        Existing firms
        
        Existing firms respond with aggressive pricing and new products
        
        existing firm’s reputation for retaliation include slow industry growth and high exit cost
        
        stronger firms with resources and excess capacity are better able to
      - natural entry barriers
        
        customer and demand
        
        Product differentiation
        
        access to distribution
        
        other advantages
        
        privileged access
        
        government regulations
        
        technologies and process
        
        cost and risk
        
        capital requirements
        
        Scale & scope economies
- - - - Fiduciary Rules
  - - - Non Employee
- - - - having blurred boundaries
      - A nested concept
      - How narrowly or broadly you define it
  - - - predicting profitability
  - - - helping managers make decisions about resource allocation
      - showing the change of industry
      - Knowing where to intervene with strategic actions
- - - - Customers do not care about which airline they fly
      - Airlines industry do not have a high barriers to entry
  - - - The firm could predict what the customers need
      - The industry has a key principle; it has a
        stable paradigm: Structure-Conduct-Performance
- - - - S: Social-Cultural
        
        Value and Culture
        
        Aspirations and Expectations
        
        Demographic trends
      - T: Technological
        
        Disruption and New Business Models
        
        Process and Operational Innovation
        
        Trends in R&D and Innovation
      - E: Economic
        
        Interest & Exchange Rates
        
        Economic Inequality
        
        Growth, Employment,Inflation
      - E: Ecological
        
        Conservation
        
        Climate Change
        
        Pollution, Sustainbility
      - P: Political
        
        Stability, Security, Corruption
        
        Local, State, National and Regional
        
        Public Policy Sensitivities
      - L: Legal
        
        Antitrust, Labor, Liability
        
        International Treaties and Laws
        
        Courts (multiple jurisdictions)
      - Example: TOYOTA
        
        Social-cultural
        
        Urbanization and the growth of the middle class
        
        Technological
        
        driver-assistance, self-driving and ride app
        
        Ecological
        
        Climate change, air pollution and waste recycling
        
        Political
        
        Evolving transportation and energy policies
        
        Legal
        
        Economic
      - Drawback
        
        little guidance on what one should look for
        
        little guidance on what the environmental trends mean and how the company should respond
- - - - Firm's Conduct
        
        drives
        
        Performance