Secret: Strategic Management and Market Structure Essay

Submitted By secretqm
Words: 457
Pages: 2
Open Document
A Guide for Industry Study and the Analysis of Firms and Competitive Strategy

This page is a guide to applying the principles of Economics to researching and understanding a market and the industries and firms that make up the market.

An excellent source for the information needed to conduct an industry study or an analysis of a firm's competitive strategy is the Babson College Horn Library at http://www.babson.edu/library/. The Horn Library provides a research guide and sources for researching a company and an industry.
I. Introduction

There are two distinct yet related models for studying markets. One method of analysis is the "Structure-Conduct-Performance" paradigm from the Industrial Organization field of Economics. Another is Porter's Five Forces. As we will see shortly, Porter's Five Forces and the "Structure-Conduct-Performance" paradigm overlap in many ways. This page combines both methods into a unified guide for industry studies and the analysis of firms and competitive strategy.

. A. 2. The Microfoundations of Porter's Five Forces

The real genius of Porter's Five Forces is that it builds on and combines two tools from microeconomics, namely the analysis of market structure and vertical boundaries. The analysis of market structure is the first element of the "Structure-Conduct-Performance" paradigm.
I. A. 2. a. Market Structure

The vertical elements of Porter's Five Forces are shown in Figure 2.

Figure 2: The Vertical Elements of Porter's Five Forces

Each of these elements corresponds to a determinant of market structure as detailed in Table 1 below.

Table 1: Porter's Five Forces and Market Structure
Element of Porter's Five Forces Determinant of Market Structure
Potential Entrants Barriers to Entry
Industry Competitors
(Direct Substitutes) Number of Sellers
Product Characteristics
Indirect Substitutes Product Characteristics
I. A. 2. b. Vertical Supply Chain

The horizontal elements of Porter's Five Forces are shown in Figure 3.

Figure 3: The Horizontal Elements of Porter's Five Forces

If one were
Show More

Related Documents: Secret: Strategic Management and Market Structure Essay

Performance Management Plan

Performance Management Plan xxxxxxxxxxxxxxxxxxxxx HRM/531 xxxxxxxx xxxxxxxxx, 2015 Performance Management Plan Landslide Limousine Vision To be the top provider of stellar customer service in transportation within Austin, Texas. Landslide Limousine Mission To provide safe, reliable, and courteous transportation to the public, while seeing each ride through the passenger's eyes. Landslide Limousines is a new transportation company in the region of Austin, Texas; with the potential to…

Words 1769 - Pages 8

Strategic Management Essays

University of Phoenix Strategic Choice and Evaluation Dennis Duran STR/581 October 4, 2013 Allen Sutton Strategic Choice and Evaluation The nature and complexity of competition in the global market compels an organization to emphasize structure and strong leadership. Home Depot’s focused approach to great customer service and entrepreneurial spirit are key elements in their tactical approach towards long-range growth and stability. Home Depot’s…

Words 1507 - Pages 7

Essay on Price Competition

and Industrial Structure Course Review Professor Yuval Salant Main topics  Investigating the connection between industry fundamentals and competitive strategy  Strategy success depends on industry fundamentals  Strategic management of competition    The tradeoff between flexibility and commitment Direct vs. strategic effects Incumbent weaknesses and entry to markets 1 Strategy is not a sequence of isolated decisions • • • • Strategy as a process Stage 1: Structure “Understanding…

Words 1364 - Pages 6

Essay Marketing & Strategy on Emirates Airline

------------------------------------------------- Assessment Front Cover Sheet Course / Programme: MBA Module: MBA4059 Strategic Management & Marketing Module Tutor: Dr. Tony Ayoola Assignment Number: One of one (100% of final mark) Assignment Title: Case Study Based Analysis Assignment Length: [5613 – 1843 (cover sheet and reference words)] = 4499 Words Issue Date: 22nd February 2013 ------------------------------------------------- Submission Deadline: 22nd April 2013 Please submit…

Words 5691 - Pages 23

Proposed Acquisition of Southern Comfort Essay

There are thus some glimpses of similarities in culture, management philosophy, and thinking which is quite a challenge in meshing in most acquisition deals from an organizational perspective. The transformation of cultures, values and change management though might seem simple on paper may need to be handled diligently. 4.Quantitative Analysis: Adding of Market Value When evaluating an acquisition of this type there are two questions that are pertinent.…

Words 2246 - Pages 9

Sanctuary Soft Marketing

larger shareholders, they are distressed in whether stay in the US market or expand overseas. The four potential countries favour by Sanctuary Soft in its expansion plan included China, India, Germany and United Kingdom. In order to select a proper country for Sanctuary Soft’s first foreign expansion, this report will provide a detail explanation regard to the motivation of the first internationalization of Sanctuary Soft; the market opportunity of four…

Words 2388 - Pages 10

Essay on Economics and California Management Review

A TRIBUTE TO OLIVER WILLIAMSON: Williamson’s Impact on the Theory and Practice of Management David J. Teece A lthough unknown to most CEOs, at least until his recent recognition by the Nobel Economics Prize Committee, Oliver Williamson has had a large impact on management theory and practice. There are many organization and strategy questions where his research is highly relevant. He has spent much of his career trying to understand how things ought to be organized to promote efficiency, minimize…

Words 4611 - Pages 19

Business Intelligence

officer: Senior executive in charge of the organizations knowledge management program. Chief privacy officer: Responsible for ensuring the company complies with existing data privacy laws. Chief security officer: Heads a formal security function for the organization and is responsible for enforcing the firm’s security policy. Collaboration: Working with others to achieve shared and explicit goals. Customer relationship management: Business and technology discipline that uses information systems…

Words 1561 - Pages 7

Essay on Practice Questions

Management[edit] Main article: Management The efficient and effective operation of a business, and study of this subject, is called management. The major branches of management are financial management, marketing management, human resource management, strategic management, production management, operations management, service management and information technology management.[citation needed] Owners may administer their businesses themselves, or employ managers to do this for them. Whether they…

Words 1770 - Pages 8

Singapore Airlines Report Essays

Contents 1.Introduction 1 2.Company background 1 3.Business Strategy 1 4.Stakeholder Analysis 3 5.Environmental and Organization Audit 5 6. Strategic positioning for SIA 8 7. An ability to think strategically for SIA 10 BCG’s growth / share matrix 11 8.Strategic plan for SIA 12 9.Conclusion 14 10.References 14 1.Introduction This report will outline Singapore Airlines (SIA) business’ environment to aid in its future strategy formulation and planning. Firstly, this report…

Words 3436 - Pages 14