【正文】 ks? ? Major industry petitor moves – Marketing initiatives – Industry capacity changes – MAs, divestitures – Vertical integration/disaggregation – Alliances and partnerships – Cost control and efficiency improvements ? Impact and likelihood of major industry discontinuities – Changes in regulation/government policy – Technological breakthroughs Key question Subquestions Issues to be considered* * May or may not be applicable to all BUs What industry are you peting in? What are the various segments in the industry? ? Industry definition ? Industry 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。9 9 39。9 7 39。0 012141639。9 8 39。9 6 39。9 9 39。9 7 39。0 0020406039。9 8 39。 Revenue USD M Operating margin Percent x (1 tax rate) Percent x Market share Percent Industry sales USD M x 2934302701020304039。9 505001 , 0 0 01 , 5 0 039。9 51214131105101539。9 51298 1005101539。9 5NOT EXHAUSTIVE 28 ? INTANGIBLE ASSET CHECKLIST ? ? Intangible assets Ways to extract nearterm value ? ? ? ? ? ? Talent ? Highly motivated and petent workforce leveraging specific skill sets to – Generate growth – Improve/increase pany intangibles ? ? ? ? ? Intellectual property ? Patents generating licensing fees ? Understanding of customer behavior ? Risk management ? Software ? Network ? Interconnected webs of parties ? Nonexclusive ? Additional member lowers costs, increases benefits ? Brand/image ? Inherent image or brand built upon excellent service and product offerings ? Lower search costs for customers ? ? ? ? ? 29 ? ?Technology for products ?Networking software INTANGIBLE ASSET ASSESSMENT APPLIED TO LEXMARK Intangible assets Ways to extract nearterm value ?Customize to suit industry segments currently not served ?Develop related products that may use working software inhouse or via partnership ?Sales force engineers ?Develop the best product to suit identified customer needs Talent ?Relationship with suppliers ?Good working relationship allows better capture of production efficiencies that improve product cycle time and cost efficiency Network Intellectual property NOT EXHAUSTIVE 30 ? STRATEGY ARTICULATION ? Where are you going to pete along these dimensions and why: – Target market – Distribution channels – Product (breadth and depth) – Geographic scope ? Target customer definition ? Benefits that you will offer the customers ? Product pricing ? Position against petition vis224。9 501 0 , 0 0 02 0 , 0 0 03 0 , 0