1. CHAPTER 4 Environmental Scanning and Industry Analysis
Continuation of last session’s lecture
THOMAS L. WHEELEN J. DAVID HUNGER
Prentice Hall 2006

2. Rivalry Among Existing Firms – Number of competitors
Porter’s Approach to Industry Analysis
Rivalry Among Existing Firms –
Number of competitors
Rate of industry growth
Product or service characteristics
Amount of fixed costs
Capacity
Height of exit barriers
Diversity of rivals
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3. Overall customer care market shares for 2009
Executive summary
Overall customer care market shares for 2009
The customer care market generated USD2.118 billion in revenue in 2009, 3.1% higher than the USD2.055 billion in The revenue for 2008 is higher than was reported last year (USD1.186 billion) because it was restated. The difference came primarily from a restatement of the size of the customer care market in China, of which we gained substantial visibility this year.
Customer care is more consolidated than many other BSS and OSS markets, and two vendors, Oracle and Amdocs, clearly dominate. However, 50 suppliers command revenue of several million dollars in this market. Two vendors, Huawei and AsiaInfo, dominate the Chinese market and there are many other smaller, geographically focused suppliers.
The customer care market is driven by greater competition in the emerging markets, the increasingly complex services and service bundles being offered by CSPs, the strong desire of consumers for instant service, the increasing need of CSPs to offer many new services quickly and the need to reduce customer support costs.
Figure 1: Customer care market shares by revenue, worldwide, 2009 [Source: Analysys Mason, 2010]

4. Overall service fulfilment market shares for 2009
Executive summary
Overall service fulfilment market shares for 2009
Figure 1: Service fulfilment market shares by revenue, worldwide, 2009 [Source: Analysys Mason, 2010]
The service fulfilment market generated USD2.233 billion in revenue in 2009, up by 2.8% from USD2.173 billion in This represents slightly more growth than we forecasted last year (2.3%).
Service fulfilment continues to be a very fragmented market. The top-six vendors accounted for only 44% of the market, while more than 30 other vendors achieved over USD10 million in revenue.
The service fulfilment market grew more than some other areas of BSS/OSS since it is considered to be related to revenue generation.
Growth in the service fulfilment market was driven by network evolution towards optical/packet technology, the push towards instant availability for complex service bundles, the need to operate in uncertain and changing business environments, deregulation of broadband and mobile in growth markets and the increasing desire to meet the needs of SMEs.

5. Continuum of International Industries
International Risk Assessment
Continuum of International Industries
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6. Strategic Groups
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7. Competitive Matrix Company Size Service Quality Monitoring Viewpoint
Ericsson
Network IQ™
IBM
Tivoli Netcool
Customer Experience
Management SW
Large
(>$100M)
OSI (SRIT)
Service
Assurance
Nokia
Mobile Quality
Analyzer
Agilent + Teradata
Customer Experience
Management System
Medium
($10M-$100M)
TTI
Netrac™
Company Size
Arantech
touchpoint™
Nexus
Netview
Small
(<$10M)
Network
Service
Customer
Service Quality Monitoring Viewpoint
1 February 2008
Proprietary - Mortensen Consulting Group and DAX Technologies

8. Example of Strategic Positioning Chart: Gartner Magic Quadrant

9. General Types of Strategies –
Strategic Types
General Types of Strategies –
Defenders – hold on; cost & market share
Prospectors – create; innovation
Analyzers – portfolio; large companies
Reactors – watch what happens, try to react quickly and effectively
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10. Gathering information on a company’s competitors
Competitive Intelligence
Competitive Intelligence is often called business intelligence
Gathering information on a company’s competitors
Product/offering – features, functionality, pricing, targets, etc.
Company – size, profitability, margins, target markets, apparent strategy, etc.
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11. Forecasting Techniques --
Extrapolation – from the past to the future
Brainstorming – informed people mapping out possibilities
Expert opinion – buy reports or commission a study
Delphi technique – structured polling technique; ‘The Wisdom of Crowds”
Statistical modeling – projecting past patterns into the future
Scenario planning – a formal technique for mapping out futures, of various probabilities
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12. Synthesis of External Factors -- EFAS
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13. CHAPTER 5 Internal Scanning: Organizational Analysis
STRATEGIC MANAGEMENT & BUSINESS POLICY 13TH EDITION
THOMAS L. WHEELEN J. DAVID HUNGER
Prentice Hall 2006

14. Internal strategic factors --
Resource-Based Approach to Organizational Analysis
Internal strategic factors --
Critical strengths and weaknesses that are likely to determine if the firm will be able to take advantage of opportunities while avoiding threats
Resources
Capabilities
Competency
Core competency
Distinctive competency
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15. VRIO Framework -- Value Rareness Imitability Organization
Core and Distinctive Competencies
VRIO Framework --
Value
Rareness
Imitability
Organization
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16. 5-Step Approach Strategy Analysis --
Resource-Based Approach to Organizational Analysis
5-Step Approach Strategy Analysis --
Identify and classify resources
Combine strengths into capabilities
Appraise profit potential of capabilities
Select strategy that best exploits
Identify resource gaps invest in weaknesses
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17. Continuum of Sustainability
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18. Imitability -- Durability --
Sustainability of Advantage
Imitability --
Rate at which a firm’s underlying resources and capabilities can be duplicated by others
Durability --
Rate at which a firm’s underlying resources and capabilities depreciate or become obsolete
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19. Core Competency can be imitated --
Sustainability of Advantage
Core Competency can be imitated --
Transparency
Transferability
Replicability
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20. Company’s method for making money in the current business environment.
Business Models
BUSINESS MODEL:
Company’s method for making money in the current business environment.
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21. Types of Business Models --
Customer Solutions Model
Profit Pyramid Model
Multi-Component System/Installed Base Model
Advertising Model
Switchboard Model
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22. Types of Models -- Time Model Efficiency Model Blockbuster Model
Business Models
Types of Models --
Time Model
Efficiency Model
Blockbuster Model
Profit Multiplier Model
Entrepreneurial Model
De Facto Standard Model
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23. Typical Value Chain for a Manufactured Product
Value-Chain Analysis
Linked set of value-creating activities beginning with basic raw material and ending with distributors getting final goods into hands of customers
Typical Value Chain for a Manufactured Product
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24. Corporation’s Value Chain
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25. Basic Organizational Structures --
Scanning Functional Resources & Capabilities
Basic Organizational Structures --
Simple structure
Functional structure
Divisional structure
Strategic business units (SBU’s)
Conglomerate structure
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26. Basic Organizational Structures
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27. Corporate Culture
Collection of beliefs, expectations, and values learned and shared by a corporation’s members and transmitted from one generation of employees to another
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28. Market Position & Segmentation Marketing Mix Product Life Cycle
Strategic Marketing Issues
Market Position & Segmentation
Marketing Mix
Product Life Cycle
Brand & Corporate Reputation
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29. Product Life Cycle
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30. Financial leverage Capital budgeting Strategic Financial Issues
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31. Technological Competence Technology Transfer
Strategic Research & Development Issues
R&D Intensity
Technological Competence
Technology Transfer
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32. Technological Discontinuity
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33. Human Resources Management Increasing use of teams Union relations
Strategic Human Resource Management Issues
Human Resources Management
Increasing use of teams
Union relations
Temporary workers
Quality of work life
Human diversity
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34. Internal Factor Analysis Summary Table
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