1. CHAPTER 4 Environmental Scanning and Industry Analysis
THOMAS L. WHEELEN J. DAVID HUNGER
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2. Societal environment --
Environmental Scanning
Societal environment --
Economic forces - Regulate exchange of materials, money, energy and information
Technological forces - Generate problem-solving inventions
Political-legal forces - Allocate power; provide laws and regulations
Sociocultural forces - Elements or groups that directly affect a corporation and are affected by it
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3. Variables in Societal Environment
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4. Task environment -- Industry Analysis --
Elements or groups that directly affect a corporation and are affected by it
Industry Analysis --
In-depth examination of key factors within a corporation’s task environment
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5. Demographic Trends
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6. 8 Current Trends – Increasing environmental awareness
Transformational Sociocultural Trends
8 Current Trends –
Increasing environmental awareness
Growing health consciousness
Expanding seniors market
Impact of the Generation Y boomlet
Declining mass market
Changing pace and location of life
Changing household composition
Increasing diversity of workforce & market
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7. International Societal Environments
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8. Scanning the Task Environment
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9. WARNING! Strategic myopia --
External Strategic Factors
WARNING!
Strategic myopia --
Willingness to reject unfamiliar as well as negative information
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10. A “Portfolio” of Issues
Issues Priority Matrix
A “Portfolio” of Issues
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11. Analyzing the Task Environment
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12. Threat of New Entrants – Economies of scale Product differentiation
Porter’s Approach to Industry Analysis
Threat of New Entrants –
Economies of scale
Product differentiation
Capital requirements
Switching costs
Access to distribution channels
Cost disadvantages
Government policy
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13. 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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14. Threat of Substitute Products or Services Bargaining Power of Buyers
Porter’s Approach to Industry Analysis
Threat of Substitute Products or Services
Bargaining Power of Buyers
Bargaining Power of Suppliers
Relative Power of Other Stakeholders
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15. Consolidated Industry – Dominated by a few large firms
Industry Evolution
Fragmented Industry –
No dominant industry
Consolidated Industry –
Dominated by a few large firms
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16. 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]

17. 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.

18. Continuum of International Industries
International Risk Assessment
Continuum of International Industries
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19. Strategic Groups
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20. 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

21. 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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22. 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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23. 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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24. Synthesis of External Factors -- EFAS
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