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Industry Analysis: The Fundamentals - Coggle Diagram
Industry Analysis: The Fundamentals
From Environmental Analysis to industry analysis:
For a firm to make profit:
Industry Enviroment
1) Create VALUE for customer, pero primero entenderlo
Value: he price the customer is willing to pay for a product exceeds the costs incurred by the firm
The stronger competition is among producers, the more value is received by customers as consumer surplus (the difference bet- ween the price they actually pay and the maximum price they would have been wil- ling to pay) and the less is received by producers (as producer surplus or economic rent).
2) understand suppliers and manage relationships
3) Understand competition
establish what features of a firm’s external environment are critical to its decisions.
What determines the level of profit in an industry?
Analyzing Industry Attractiveness:
Basic Premise:
está determinado por las influencias sistemáticas de la estructura de la industria.
Industrial organization economy:
underlying theory of how industry structure drives competitive behavior and determines industry profitability
Theory of Monopoly:
a single firm is protected by high barriers to entry.
Theory of Perfect Competition:
many firms supply a homogeneous product and there are no entry barriers.
Porter’s Five Forces of Competition Framework
consiste en poner un marco referencial 5 fuerzas de la competencia, donde ineteractuan simultaniamente cada una con una personalidad propia.
Considera que la rentabilidad de una industria esta supeditada a 5 fuerzas
Competition from Substitutes
demand inelastic con respecto al precio
: ausencia de sustitutos cercanos para un producto = customers son insencitivo al precio.
demand elastic con respecto al precio:
existencia de productos substitutos = clientes cambiaran a los sustitutos por incremento de precio de un producto.
Threat of Entry