the more influence they have to increase prices and extract profits, and lower the
profitability of industry.
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The greater the negotiating power of suppliers
What are the 5 steps to STEEP
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1) Brainstorm each of the 5 factors
2) ID and describe biggest trends, forces in each
3) Examine these and see if there are connections
4) Forecast future directions and implications for each
5) Derive implications for the firm for each trend (what strategies can they
do to capitalize/hedge against?)
What are the 5 stages of the S-curve
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1. Introduction
2. Growth
3. Shake out
4. Maturity
5. Decline
4 reasons to no stay a single firm
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1. Market may be stuck in decline/in one domestic market
2. Growth is limited
3. Opportunity lost to share skills in other industries
4. Customer buying may dictate more than one product/service
Pros of direct exports
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• Easy to initiate
• No shared control or ownership
the higher the likelihood that buyers will switch their preferences if industry product
prices get too high thus, lowering the profitability of the industry.
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The greater the threat of substitute produces
Related diversification-Transfer knowledge (4)
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1. Customer segments
2. R & D breakthroughs
3. Lessons learning in other divisions
4. Move executives to build management talent
Why would a successful company consider expanding into a new industry?
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To acheive synergies to increase competence, efficiency, and competitve
advantage
profitability of industry.
Give this one a try later!
The greater the negotiating power of suppliers
What are the 5 steps to STEEP
,Give this one a try later!
1) Brainstorm each of the 5 factors
2) ID and describe biggest trends, forces in each
3) Examine these and see if there are connections
4) Forecast future directions and implications for each
5) Derive implications for the firm for each trend (what strategies can they
do to capitalize/hedge against?)
What are the 5 stages of the S-curve
Give this one a try later!
1. Introduction
2. Growth
3. Shake out
4. Maturity
5. Decline
4 reasons to no stay a single firm
Give this one a try later!
1. Market may be stuck in decline/in one domestic market
2. Growth is limited
3. Opportunity lost to share skills in other industries
4. Customer buying may dictate more than one product/service
Pros of direct exports
, Give this one a try later!
• Easy to initiate
• No shared control or ownership
the higher the likelihood that buyers will switch their preferences if industry product
prices get too high thus, lowering the profitability of the industry.
Give this one a try later!
The greater the threat of substitute produces
Related diversification-Transfer knowledge (4)
Give this one a try later!
1. Customer segments
2. R & D breakthroughs
3. Lessons learning in other divisions
4. Move executives to build management talent
Why would a successful company consider expanding into a new industry?
Give this one a try later!
To acheive synergies to increase competence, efficiency, and competitve
advantage
