【正文】 Lin Vasu Krishnamurthy? Osh Kosh B’ Gosh?SP/Retail/Mike Weiss? PwC MCS/Consulting/Vasu Krishnamurthy? United Airlines/Travel/Vasu Krishnamurthy? Robert M. Grant, “Contemporary Strategy Analysis”, 3rd EditionSource ListSC111898KRSydney 28 169。 1998, PricewaterhouseCoopers .The Fit vs. Attractiveness Model optimizes strategy by developing a sense of the realistic state of the market and pany affairs. The Model pares product fit with a market to product fit with a pany’s objectives.Fit vs. Attractiveness Model SummaryThe Fit vs. Attractiveness Model? Baked Goods? Bulbs? Cheese? Fruit? Kitchenware? Meat/Seafood? Nursery Stock? Snacks/Candy? Stationery ? Decorative Accessories? Indoor Plants? Nuts? Seeds? Trees/Shrubs? Gourmet Food ? Bed/Bath? Pool/Patio/Gardening? Crafts? Personal Care/Grooming? Specialty Apparel? Camping Equipment? Children’s Apparel? Drug/Vitamins/Health Food? Hardware/Tools? Hosiery/Lingerie? Women’s Apparel? Men’s Apparel? Women’s Large Size Apparel? Athletic Equipment? Fishing Equipment? Hunting Equipment? Sporting Good ApparelCategoryFit WithCompanyHighMediumLowLow Medium HighCategory AttractivenessCATEGORY EVALUATION SPECIALTY/SPINOFFCategories included in existing or planned specialty booksRemended additional specialty book ventureEXAMPLESC111898KRSydney 29 169。 1998, PricewaterhouseCoopers .ApproachFit vs. Attractiveness ModelStep 1 Identify product, category or market overall attractiveness as being low, medium, or high. Plot along xaxis.Step 2 Identify product category, or market fit with pany objectives as being low, medium, or high. Plot along yaxis.Step 3 Evaluate newly created matrix。 aim to reveal products, categories, or markets that fall under high overall attractiveness and high fit with pany objectives.When to ApplyThe Fit Vs. Attractiveness Model is used to analyze a new product or service offering’s fit within a pany, in parison to the overall attractiveness of the product or offering. This particular model requires judgements which are subjective in nature。 one should be aware that this model may oversimplify the market situation.SC111898KRSydney 30 169。 1998, PricewaterhouseCoopers .Citations Client and Industry ExperienceFit vs. Attractiveness ModelSource List? Galileo/Travel/ Spencer Lin Vasu Krishnamurthy? PwC MCS/Consulting/Vasu Krishnamurthy? Paul Elkin, “Mastering Business Planning and Strategy: The Power and Application of Strategic Thinking”? Henry Mintzberg, James Brian Quinn, Sumantra Ghoshal, “The Strategy Process”SC111898KRSydney 31 169。 1998, PricewaterhouseCoopers .Five Forces Analysis SummaryThe Five Forces Analysis evaluates the attractiveness of an industry.Five Forces AnalysisDRIVERS OF MARKET ATTRACTIVENESSPOTENTIAL ENTRANTSEntry barriers are high if there are:? Economies of scale? Product differentiation? Capital requirements? Limited access to distribution channels? Restrictive government policies? Potential retaliatory reaction of incumbentsINDUSTRY COMPETITORSRivalry is intense if:? Competitors are numerous or roughly equal in power or size? Industry growth is slow? There are high fixed costs or the product is perishable? The product lacks differentiation or switching costs? Capacity is augmented in large increments ? Exit barriers are high? Rivals are diverse in strategies, origins, and personalitiesSUBSTITUTESThreat of substitutes is high if:? There is an abundance of products or services that serve the same function? The priceperformance tradeoff of substitutes is attractiveSUPPLIERSBargaining power of suppliers is greater if:? The supply industry is dominated by a few panies or is more concentrated than the buying industry? The supply product is differentiated or there are high switching costs? There are few substitutes? The buying industry is not an important customer of the supply industry? The supply industry poses a credible threat of forward integrationBUYERSBargaining power of customers is greater if:? The customer group is concentrated or buys in large volume? Products purchased are undifferentiated? Products purchased represent a significant portion of the customer39。s cost? Customers earn low profits, creating incentive to lower purchasing costs? The product purchased is unimportant to the quality of the customer39。s product? Switching costs are low? Customer group poses a credible threat of backward integrationSC111898KRSydney 32 169。 1998, PricewaterhouseCoopers .ApproachWhen To ApplyUse the Five Force analysis to evaluate a market’s structure and the trends affecting a market’s profitability. Please note that the structural conditions alone do not provide a quantification of total future market profitability or the viability of a pany. Therefore, it is important to integrate pany specific insights and confirm that the model accurately reflects what is happening in the market. Five Forces AnalysisFive Forces analysis utilizes a four step approach and is applied as a starting point for understanding a market’s attractiveness:Step 1: Collect dataStep 2: Evaluate strength of key forces, including: (What about technology?)? Buyers? Suppliers? Substitutes? Competitors? Potential entrantsStep 3: Qualitatively assign a high, medium or low score to each key forceStep 4: Assess the overall effect of the forces on industry attractiveness and strategic implicationsSC111898KRSydney 33 169。 1998, PricewaterhouseCoopers .Citations Client and Industry ExperienceFive Forces Analysis? Aerospace Electronics Alliance/MultiIndustry/KIT database? Galileo/Travel/ Spencer Lin Vasu Krishnamurthy? Iberdrola and Johnson Johnson/TCUtilities/KIT database? la Caixa/FMBanking/KIT da