【正文】 ry segmentation – Definition – Sizing 8 ? SEGMENT ANALYSIS ILLUSTRATIVE Industry boundaries Segments Industry segments ? Relatively distinct subgroupings within the industry ? Market is relatively similar within the segment but different across segments ? Different industry dynamics may vary in importance in different segments 9 ? Producers Industry S ? Technology breakthroughs ? Changes in government policy/regulations –Domestic –International Economics of demand ? Availability of substitutes ? Differentiability of products ? Rate of growth ? Volatility/cyclicality Economics of supply ? Concentration of producers ? Import petition ? Diversity of producers ? Fixed/variable cost structure ? Capacity utilization ? Entry/exit barriers Industry chain economics ? Bargaining power of input suppliers ? Bargaining power of customers Marketing ? Pricing ? Volume ? Advertising/promotion ? New products/RD ? Distribution Capacity change ? Expansion/contraction ? Entry/exit ? Acquisition/merger/ divestiture Vertical integration ? Forward/backward integration ? Vertical joint ventures ? Longterm contracts Internal efficiency ? Cost control ? Logistics ? Process RD ? Organization effectiveness Finance ? Profitability ? Value creation Technological progress Employment objectives External shocks Feedback tructure C onduct P erformance STRUCTURECONDUCTPERFORMANCE (SCP) MODEL 10 ? 1. Determinants of supplier power ? Differentiation of inputs ? Switching costs of suppliers and firms in the industry ? Presence of substitute inputs ? Supplier concentration ? Importance of volume to supplier ? Cost relative to total purchases in the industry ? Impact of inputs on cost or differentiation ? Threat of forward integration relative to threat of backward integration by firms in the industry 2. Determinants of barriers to entry ? Economies of scale ? Proprietary product differences ? Brand identity ? Switching costs ? Capital requirements ? Access to distribution ? Absolute cost advantages – Proprietary learning curve – Access to necessary inputs – Proprietary, lowcost product design ? Government policy ? Expected retaliation 5. Rivalry determinants ? Industry growth ? Fixed (or storage) cost/value added ? Intermittent overcapacity ? Product differences ? Brand identity ? Switching costs ? Concentration and balance ? Informational plexity ? Diversity of petitors ? Corporate stakes ? Exit barriers 3. Determinants of buying power ? Bargaining leverage –Buyer concentration vs. firm concentration –Buyer volume –Buyer switching costs relative to firm switching costs –Buyer information –Ability to backward integrate –Substitute products –Pullthrough 4. Determinants of substitution threat ? Relative price performance of substitutes ? Switching costs ? Buyer propensity to substitute 2. New entrants 3. Buyers 4. Substitutes Intensity of rivalry 1. Suppliers ? Price sensitivity –Price/total purchases –Product differences –Brand Identity –Impact on quality perception –Buyer profits –Decision makers39。 incentives 5. Industry petitors FORCES AT WORK FRAMEWORK 11 ? Opportunities/Threats ? How are demand and supply expected to evolve? ? How do you expect the industry chain economics to evolve? ? What are the potential major industry discontinuities? ? What petitor actions do you expect? YOUR BU SWOT ANALYSIS CONVERT OPPORTUNITIES BUILD ON STRENGTHS NEUTRALIZE THREATS ADDRESS WEAKNESSES Strengths/ Weaknesses ?What are your BU’s assets/petencies that solidify your petitive position? ?What are your BU’s assets/petencies that weaken your petitive position? Can be used as a thought starter for petitive analysis and internal assessment Surfaces potential opportunities/threats arising from factors external to the BU 12 ? SCP APPLIED TO LEXMARK ? Rapidly changing technology, ., birth of portable, handheld, wireless puters ?Rapidly changing customer preferences ?Possibility of a paperless society given increasing environmental concern and rise of the inter Economics of demand ?Inkjet printers replacing laser in nonwork environment ?High price sensitivity。 minimal opportunity for major product differentiation ?Growth of laser and inkjet printer markets stable but dependent on PC sales and degree of replacement Economics of supply ?HP holds lion’s share of printer market ?Industry capacity exceeds market demand ?Presence of counterfeit and recycled product supply especially in consumables ?High exit barriers due to asset intensity Industry chain economics ?Bargaining power of suppliers low ?Bargaining power of distributors high ?Little integration (forward or backward) Marketing ?Manufacturers peting mainly on price ?Retail dominant distribution channel ?Aggressive development and release of new products ?Moves to increase brand awareness via marketing campaigns ?Creative financing packages Internal efficiency ?Relentless drive to low cost manufacturing ?Continuous efforts to create more specialized features and/or functions Others ?Entry of PC and peripherals players ?Clamp down on counterfeit and recycled consumables suppliers Finance ?Price petition on printer hardware drives margins down and forces players to rely on profits from consumable products (good margins) and high volume capture on hardware S External shocks Feedback tructure C onduct P erformance 13 ? RESULTING OPPORTUNITIES AND RISKS FOR LEXMARK Opportunities Risks ? Bee the first mover in printers for portable, handheld, wireless puter market ? Gr