Benefits Of Industry Analysis

University:
California State University, Northridge
Course:
BUS 104 | Introduction to Business
Academic year:

2023
Views:

127

Pages:

2
Author:

JJIssac

BENEFITS OF INDUSTRY ANALYSIS  Analyzing industry structure firms in several ways: Audit internal strengths and weaknesses  Match strengths with opportunities, mitigate threats  helps Assess vulnerability to new entrants based on entry barriers  Gauge threat of substitutes and how to address it     3. Generate Strategic Alternatives  Understand supplier power and how to respond Consider options like expanding, diversifying, exiting businesses  Assess buyer power and how to manage it Assess make vs partnerships, acquisitions  Evaluate risks and returns of alternatives Identify competitor strengths/weaknesses and strategies Craft approaches to improve position vis-a-vis industry forces This analysis enables firms to develop strategies to gain a competitive advantage. The goal is to create a defendable position against the 5 forces. 4. Choose Strategy  Select approach aligned with SWOT analysis  May entail tradeoffs between alternatives 5. Implement Strategy  Mobilize resources, assign tasks, formulate action plans  May require changes structure, systems, culture  Motivate personnel to execute strategy Strategic Management Process The steps include: 1. Formulate Objectives Mission and to 6. Evaluate Performance  Review objectives Ensure objectives fit capabilities and environment  Adjust strategy if needed due to internal/external changes Adjust objectives over time as conditions change  Reformulate strategy if it proves ineffective  Define purpose and goals   2. SWOT Analysis  buy, Scan external opportunities and threats results versus The process is iterative - evaluation leads to adjustments in objectives, SWOT analysis, and choices. Strategy must evolve along with the internal and external environment.