define the industry your case comes from. Remember this industry is probably dependent on other impinging industries. The attractiveness of an industry may well have some dependence on other industries. Consider (i) Who are the main consumers of the industry products? (ii) How are they performing? (iii) Is this an industry where the players are highly differentiated? You must address the objectives above, making any relevant notes for later consideration.
Answer the questions below:
1. Answer the question: ‘What industry (or industries?) is this case organisation in?
2. Are there key substitute products or services for current products or services? What are they and how are they positioned relative to your case study products or services? (Hint: To help you answer this, you might decide to plot current industry strategic group strategies on a map of the industry to find gaps. (spaces which allow a firm to move in a particular direction, if it is attractive for them to do so). (See J SW Chapter 3 – but remember you are thinking about the strategic significance of this – and so must identify appropriate ways to determine and analyse the strategic spaces)
Eg. comparing the industry with other industries by using graphs
(‘You decide’ means you must map (i.e. change the axes, likely to be inappropriate to choose the ones illustrated) to any balancing considerations you feel are strategically significant in the industry. (See text: Strategic Space Analysis) E.g. Maybe the cost/differentiation matrix is more appropriate?
3.What are the key competencies required in the industry?
4.What key resources are required in the industry?
5. Average rough growth rates and profitability of firms in the industry is…….
6. This firm’s performance compared to the industry average, over a three-year period is……
E.g. Share value, profitability, growth, market share, customer service, quality etc.)
7. Plot or map the industry forces (E.g. using force field analysis, 5 force model, 7 force model or any other model you choose) showing the major external environmental forces operating in your case study.
Look at each force and define it as an opportunity or a threat. Define any offensive or defensive strategies.
8.Answer the following:
a. Is the industry attractive or destructive? Does the firm want to stay in the industry in which they are competing? Why?
b. How can competing firms protect themselves from industry threats?
c. What opportunities are created by trends in the industry?
d. Can your case organisation manipulate the industry the way they want?
e. How can your case organisation become/maintain industry leadership?
9.Who are the principle players in the industry? Which firms will be winners in the future? How are successful firms positioning themselves? How sustainable is their dominance? What type of rivalry is present?
10. What role does distribution and logistics play in the case strategy?
11.Are acquisitions/mergers or other factors changing the ownership patterns in the industry? Should Strategic Alliances or Spin-offs be considered. How? Why? What can they achieve strategically? What synergies exist or can be created?
12. How significant are changes in environmental constraints affecting the industry? Include (for example) political, social, technological, economic, physical, legislative, demographic, age profiles, trade unions, skill levels and/or what ever else you see fit.
13. What technological or other developments are affecting product/service development, cash management, procurement, marketing, and logistics, sales and after sales, systems, people management.
14. What changes are taking place in customers’ demand patterns? Are new market segments developing? (or capable of being created). Are existing markets changing their buying behaviour?
15. Can you identify any particular financial strategies in the industry and how well is your case organisation placed in pursuit of their financial strategy?
Conclusion Phase (Bringing it all together)
Complete your assignment by writing four very brief (approx. 100 word) scenarios.
1 Likely Scenario
2 Pessimistic Scenario
3 Optimistic Scenario