Term
| What is the ultimate goal of industry analysis? |
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Definition
| Assessment of Industry Attractiveness |
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Term
What three factors are used to judge industry attractiveness?
"What's the highest card in a deck?" |
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Definition
Aggregate Factors
Category Factors
Environmental Factors |
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Term
What are the 5 features of Aggregate Factors?
S3GP |
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Definition
1. Size
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2. Sales Cyclicity
3. Seasonality
4. Growth
5. Profitability |
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Term
| What is the Boston Consulting Group Approach? |
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Definition
One method used to compare Strategic Business Unit (SBU) performance
It is based on two relative figures: market growth (growing market is more attractive) and position of SBU (measures relative market share = your share / competitiors share) |
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Term
| What are the four compontents of the BCG growth-share matrix? |
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Definition
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Term
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Definition
??? = some opportunity to grow. Unlikely to generate resources to grow itself. Needs resources from others
Stars = can put pressure on other groups. Good market share in growing market
Cash cows = market isn't growing fast anymore. Well established. Can advertise at low costs because you are known. Can be "milked" for resources
Dogs = low market share, slow market growth. Get beating |
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Term
Assign the 4 fundamental strategies to each group
Building
Maintain
Develop Niche
Harvest
Divest |
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Definition
Building - ??? and stars
Maintain - cash cows and dogs
Develop Niche = Dogs and ???
Harvest = Stars and cash cows
Divest = dogs and ??? |
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Term
| What are the 6 points for Category Factors? |
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Definition
1. Threat of New Entrants
2. Buyer Power
3. Seller Power
4. Category Rivalry
5. Pressure for Substitutes
6. Capacity |
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