STRATEGIC MANAGEMENT Alex Miller THIRD EDITION © The McGraw-Hill Companies, Inc., 1998

Chapter Three External Analysis Slide 3-1 Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998

Examples of Dimensions in General Environment Assessment DEMOGRAPHIC SOCIOCULTURAL POLITICAL/LEGAL MACROECONOMIC TECHNOLOGICAL GLOBAL Slide 3-2 Exh. 3.1 Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998

The Five Forces Model of Competition Threat of New Entrants Rivalry Among Existing Firms Bargaining Power of Suppliers Bargaining Power of Buyers Threat of Substitute Products Slide 3-3 Exh. 3.3 Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998

Continuum of Types of Competition PURE MONOPOLY AVOIDED COMPETITION HYPER- COMPETITION PERFECT COMPETITION Slide 3-4 Exh. 3.5 Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998

Summary of Factors Affecting the Approach Taken to Rivalry Tendency Toward Avoided Competition The Industry’s Structure The Possibility for Implicit Collusion The Sustainability of Competitive Advantage The Stability of the Environment The Strategies Pursued The Emphasis Observed in Any Particular Market Tendency Toward Hypercompetition Slide 3-5 Exh. 3.7 Irwin/McGraw-Hill © The McGraw-Hill Companies, Inc., 1998