Presentation is loading. Please wait.

Presentation is loading. Please wait.

Intra-Industry Analysis Game theory Competitor Analysis Segmentation Strategic Groups OUTLINE.

Similar presentations


Presentation on theme: "Intra-Industry Analysis Game theory Competitor Analysis Segmentation Strategic Groups OUTLINE."— Presentation transcript:

1 Intra-Industry Analysis Game theory Competitor Analysis Segmentation Strategic Groups OUTLINE

2 The Contribution of Game Theory to Competitive Analysis The Contribution of Game Theory to Competitive Analysis Main value: 1.Framing strategic decisions as interactions between competitors 2.Predicting outcomes of compeittive situations involving a few players Some key concepts: 1.Competition and CooperationGame theory can show conditions where cooperation more advantagfeeous than comeptition 2.Deterrencechanging the payoffs in the game in order to deter a comeptitor from certain actions 3.Commitmentirrevokable demployments of resoruces that give criditability to threats 4.Signalingcommunication to influnece a comeptiors decision Problems of game theory: Useful in explaining past competitive behaviorweak in prediucting future competive behaoir. Whats the problem? Multitude of models, outcomes highly sensitive to small changes in assumptions

3 PREDICTIONS What strategy changes will the competitor initiate? How will the competitor respond to our strategic initiatives? OBJECTIVES What are competitors current goals? Is performance meeting there goals? How are its goals likely to change? STRATEGY How is the firm competing? ASSUMPTIONS What assumptions does the competitor hold about the industry and itself? RESOURCES & CAPABILITIES What are the competitors key strengths and weaknesses? A Framework for Competitor Analysis

4 Segmentation Analysis: The Principal Stages Identify key variables and categories. Construct a segmentation matrix Analyze segment attractiveness Identify KSFs in each segment Analyze benefits of broad vs. narrow scope. Identify segmentation variables Reduce to 2 or 3 variables Identify discrete categories for each variable Potential for economies of scope across segments Similarity of KSFs Product differentiation benefits of segment focus

5 The Basis for Segmentation: Customer and Product Characteristics Opportunities for Differentiation Opportunities for Differentiation Characteristics of the Buyers Characteristics of the Buyers Characteristics of the Product Characteristics of the Product Industrial buyers Household buyers Distribution channel Geographical location Geographical location *Size *Technical sophistication *OEM/replacement *Size *Technical sophistication *OEM/replacement *Demographics *Lifestyle *Purchase occasion *Demographics *Lifestyle *Purchase occasion *Size *Distributor/broker *Exclusive/ nonexclusive *General/special list *Size *Distributor/broker *Exclusive/ nonexclusive *General/special list *Physical size *Price level *Product features *Technology design *Inputs used (e.g. raw materials) *Performance characteristics *Pre-sales & post-sales services *Physical size *Price level *Product features *Technology design *Inputs used (e.g. raw materials) *Performance characteristics *Pre-sales & post-sales services

6 Segmenting the European Metal Can Industry

7 Segmenting the World Automobile Market REGION US& Canada W.Europe E.Europe Asia Lat America Australia Africa Luxury Cars Full-size sedans Mid-size sedans Small sedans Station wagons Passenger minivans Sports cars Sport-utility Pick-up trucks

8 % 100% Share of industry revenue Auto loans Leasing Warranty Gasoline Auto insurance Aftermarket parts Auto rental Operating margin Auto manufacturing New car dealers Used car dealers Service & repair Vertical Segmentation & Industry Profit Pools The US Auto Industry Vertical Segmentation & Industry Profit Pools The US Auto Industry

9 SEGMENT Low price bicycles sold primarily through department and discount stores, mainly under the retailers own brand (e.g. Sears Free Spirit); KEY SUCCESS FACTORS * Low-costs through global sourcing of components & low-wage assembly. * Supply contract with major retailer. Leading competitors: Taiwanese & Chinese assemblers, some U.S manufacturers, e.g. Murray Ohio, Huffy Medium-priced bicycles sold primarily under manufacturers brand name and distributed mainly through specialist bicycles stores; *Cost effieciency through large scale operation and either low wages or automated manufacturing. *Reputation for quality (durability, reliability) through effective marketing to dealers and/or consumers. * International marketing & distribution. Leading competitors: Raleigh, Giant, Peugeot, Fuji *Quality of components and assembly, Innovation in design (e.g. minimizing weight and wind resistence). *Reputation (e.g. through success in racing, through effective brand management). *Strong dealer relations. Similar to low-price bicycle segment. High-priced bicycles for enthusiasts. Childrens bicycles (and tricycles) sold primarily through toy retailers (discount toy stores, department stores, and specialist toy stores). Segmentation and Key Success Factors in the U.S. Bicycle Industry

10 Strategic Group Analysis A strategic group is a group of firms in an industry following the same or similar strategy. Identifying strategic groups: Identify principal strategic variables which distinguish firms. Position each firm in relation to these variables. Identify clusters.

11 Broad PRODUCTRANGE Narrow NationalGEOGRAPHICAL SCOPEGlobal NATIONALLY- FOCUSED, SMALL, SPECIALIST PRODUCERS e.g., Bristol (U.K.), Classic Roadsters (U.S.), Morgan (U.K.) NATIONALLY FOCUSED, INTERMEDIATE LINE PRODUCERS e.g. Tofas, Kia, Proton, Maruti REGIONALLY-FOCUSED BROAD-LINE PRODUCERS e.g. Fiat, PSA, Renault, PERFORMANCE CAR PRODUCERS e.g., Porsche, Maserati, Lotus LUXURY CAR MANUFACTURERS e.g., Jaguar, Rolls Royce, BMW GLOBAL SUPPLIERS OF NARROW MODEL RANGE e.g., Volvo, Subaru, Isuzu, Suzuki, Saab, Hyundai GLOBAL, BROAD-LINE PRODUCERS e.g., GM, Ford, Toyota, Nissan, Honda, VW, Daimler Chrysler Strategic Groups in the World Automobile Industry

12 Geographical Scope Vertical Balance NATIONAL PRODUCTION COMPANIES INTEGRATED INTERNATIONAL MAJORS NATIONALLY-FOCUSED DOWNSTREAM COMPANIES INTEGRATED DOMESTIC OIL COMPANIES Chevron Royal Dutch -Shell Gp. Exxon -Mobil Statoil PDVSA Kuwait Petroleum Petronas Petrobras Repsol Nippon Tosco BP-Amoco Texaco Phillips Pemex Indian Oil ENI INTEGRATED OIL MAJORS INTERNATIONAL UPSTREAM, REGIONALLY FOCUSED DOWNSTREAM Iran NOC E.g. Neste Phillips ENI Elf-Fina-Total Repsol INTERNATIONAL DOWNSTREAM OIL COMPANIES INTERNATIONAL UPSTREAM COMPANIES Enterprise Premier Oil YPF Strategic Groups Within the World Petroleum Industry


Download ppt "Intra-Industry Analysis Game theory Competitor Analysis Segmentation Strategic Groups OUTLINE."

Similar presentations


Ads by Google