Đang tải... (xem toàn văn)
Implication: Under dynamic competition, 5-forces framework is less useful—Competitive behavior and industry structure jointly. determined by underlying conditions of technology, demand &[r]
(1)
Further Topics in Industry and Competitive Analysis
Further Topics in Industry and Competitive Analysis
Extending 5-forces analysis
o Does industry matter? o Complements
o Dynamic competition
Game Theory
Competitor Analysis Segmentation
Strategic Groups
(2)
Does Industry Matter?
Does Industry Matter?
Percentage of variance in firms’ return on assets explained by:
Industry effects
Firm-specific effects
Unexplained variance Schmalensee
(1985)
19.6% 0.6% 80.4% Rumelt (1991) 4.0% 44.2% 44.8% McGahan &
Porter 1997)
18.7% 31.7% 48.4% Hawawini et al
(2003)
(3)The Value NetThe Value Net
COMPANY CUSTOMERS
SUPPLIERS
(4)
SUPPLIERS
POTENTIAL ENTRANTS
SUBSTITUTES
BUYERS
INDUSTRY COMPETITORS
Rivalry among existing firms
Bargaining power of suppliers
Bargaining power of buyers Threat of
new entrants Threat of substitutes
COMPLEMENTS
The suppliers of complements create value for the industry
and can exercise bargaining power Five Forces or Six? Introducing Complements
(5)
Dynamic Competition
Dynamic Competition
Porter framework assumes:
(a) industry structure drives competitive behavior (b) Industry structure is (fairly) stable.
But, competition also changes industry structure:
• Schumpeterian Competition: A “perennial gale of creative
destruction” where firm strategies continually transforms industry structure innovation overthrows established market leaders
• Hypercompetition: “intense and rapid competitive
moves….creating disequilibrium through continuously creating new competitive advantages and destroying, obsolescing or neutralizing opponents’ competitive advantages
Implication: Under dynamic competition, 5-forces framework is less useful—Competitive behavior and industry structure jointly
(6)
The Contribution of Game Theory to Competitive Analysis
The Contribution of Game Theory to Competitive Analysis
Main value:
1. Framing strategic decisions as interactions between competitors 2. Predicting outcomes of competitive situations involving a few,
evenly-matched players
Some key concepts:
1. Competition and Cooperation—Game theory can show conditions where cooperation more advantageous than competition
2. Deterrence—changing the payoffs in the game in order to deter a competitor from certain actions
3. Commitment—irrevocable deployments of resources that give creditability to threats
4. Signaling—communication to influence a competitor's decision
Problems of game theory:
Useful in explaining past competitive behavior—weak in predicting future competitive behavior.
(7)
PREDICTIONS
• What strategy changes will the competitor
initiate?
• How will the competitor respond to our strategic initiatives?
OBJECTIVES
What are competitor’s current goals? Is performance meeting there goals? How are its goals likely to change? STRATEGY
How is the firm competing?
ASSUMPTIONS
What assumptions does the competitor hold about the industry and itself?
RESOURCES & CAPABILITIES What are the competitors’ key strengths and weaknesses?