Presentation on theme: "Competing in the Global Market Global competition impacts: –industry structure –degree of competition –firms national origin and the competitive advantage."— Presentation transcript:
Competing in the Global Market Global competition impacts: –industry structure –degree of competition –firms national origin and the competitive advantage of nations Competitive position –costs, market share, price quality, accumulated experience Competitive forces - Five Forces Analysis
Fragmented Industries Populated by a large number of Small Medium Enterprises Porter Absence of market leaders with the power to influence events. Where: low barriers to entry transport costs are high local image important etc.
A fragmented industry may become consolidated with: technological change standard product preferred over customised one large publishing companies with small imprints Consolidate naturally with age Without consolidation a firm can specialise and grow by: offering a standard product or service dealing with particular customers Concentrating on a particular area
Concentrated Industries Dominated by a small number of large firms, exercising significant influence over the market How does this happen? Cheap to produce in bulk Significant resources to stay in business High barriers to entry etc.
Always a main market leader influences the way business is done strong relationship with sources of supply control over distribution networks
Emerging Industries New or reformed industry e.g electronic publishing and interactive TV - FT, New York times, Digital TV. e.g Waste recycling - BMW, Winchester City Council e.g Internet browsers - Netscape Navigator e.g Road pricing systems - Toll systems for bridges and motorway
Problems with emerging industries: lack of faith in technology innovative product where customer needs are as yet unknown high initial start up costs potential customers need to be kept informed of developments early barriers to entry e.g raw materials competition for components customer confusion Obsolescence Erratic quality Scepticism from bankers and investors
Link in with... Kenichi Ohmae - Globalisation means businesses do not have a nationality, but shared values Levitt Globalisation of Markets Competitive Advantage of Nations (last week) Kotler - Where do we go from here?