Environmental Uncertainty - degree of complexity and rate of

change in an organization’s external environment.

Industry evolution.- evolve in terms of competition, structure, Dynamics of competition.

key points- arise when constant change in environment, which market behavior types ar Evolve as companies enter, and react to changes in industry.

is can be due to tech advancement or globalization, increasing Fragmented industry.- new firm hold significant market Erosion of competitive advantage.- competitive position are
customer, expectation and changing regulation

share, low entry barrier, small and medium players, high challenging, eroded overtime because change in five forces
competition, low brand loyalty- strategic implication, model, technological disruption, shifting custom, preference,
environmental analysis – it is a process of monitor evaluate and focusing on differentiation niche, market, and innovatio competitors imitating

decimate information from external environment to guide consolidated industry- dominated by a few large firm,
strategic decision. It is use to identify opportunity threat and intense rivalry, significant EOS, high market, share cycle of competition existing versus new player

ensuring strategy, aligning and anticipating environment shift.

concentration, strategic implication compete on scale, existing player, continuously, adapt, and risk being displaced

branding, and efficiency, merger, and acquisition of common

new player often change the rules by producing new business

identifying external environment variables.
model, lower cost, new technology, unique customer experience
It includes natural environment.(physical resources, wild life, categorizing, international industry- firms must understand leading to a cycling pattern of innovation, competition, response,
climate.), societal environment.( Indirectly affect influence, long- geographic scop and disruption

term decision factors like pestel), task environment(directly Multi domestic industry.- very significantly from country to
affect a corporation or affected by include government supplier, country, decentralized decision making, product and cycle of competitive response

competitor, customer, creditor, employees, union, etc.), in strategy adapt for local market. Example packed food. Focus
industry analysis.(in depth, examination of key factor within on local partnership, culture, customization, and localization
corporation task environment.)

Global industry.- standardize across border., low

customization, centralized, production, and marketing, focus
Stee on efficiency, cost leadership, global branding. Example
Social culture.- rise of millennials, increasing aware, aircraft
awareness for environment, health, changing family Regional industries.- coordinate and compare primarily complication of speed of competitive cycle

structure, aging population, diversity, and workforce within defined global regions focus on regional integration,
Technological.- AI, IOT, Big Data, Blockchain, automation trade block alignment, regional supply chain.

Economic.- inflation, interest rate, income, unemployment

rate Strategic group.

Environmental.- climate change, carbon emission, pollution Set of firms within an industry, share, similar characteristics or
Political/legal.- tax policies, labor, loss, environment, follow strategies or compete with similar Strategic dimension..
regulation, international trade agreement

targeting customer, use similar distribution channel, offering,

comparable pricing, same resources rely.

categories of risk related to natural environmen The characteristics of identifying strategic group Key Success Factors in industry analysis

climate change- impact operation regulation, and cos Scope of activity include geographic coverage, number of essential area of activity that must be performed to achieve complete success,
litigation risk- legal action due to environment damag market segment, served, product or service range, brand helps in influencing firms, ability to complete effectively and attend superior
Regulatory Risk – evolving policies and compliance investment, Technology adoption, R&D spending performance- skilled labour force, effective distribution channel, cost
standards Distribution channel used.- online or off-line, exclusive efficiency, technological innovation, customer loyalty, efficient supply, chain
Supply Chain Risk – resource scarcity, disruptions versus multichannel, direct to consumer or retailer partner management, etc.

Physical Risk – damage due to extreme weather pricing strategy- premium versus low cost, value rate
Reputational Risk – brand image affected by poor service versus cost focu Industry matrix

environmental practices quality, and innovation, focus including high innovation, strategic tool to evaluate how well companies in a specific industry perform
Product and Technology Risk – obsolescence or unique offering versus standard product

against identified key factors, helps compare competitor, understand what

environmental impact of products 

factor contribute most to competitive advantage. heads to identify industry,

use of strategic group analysis trend, recognizing area of improvement, compare strength and weakness

MNC.- multinational corporation operates with significant and Identify Direct competitor Steps to create industry matrix are.-identify key success factors, assigned
activities in multiple countries and coordinate operation across Understand industry structure weights, rate them based on the competitors performance, multiply the weight
border
Assess opportunity threat and gaps with the weight and attain the weighted score, total weighted score and a
key functions- marketing, manufacturing, finance, research and Predict strategic moves check overall competitive strength

development and innovation, HR and operation Analyze mobility barrier.

competitive intelligence- systematic and ethical gathering, analysis and

Strategic group mapping.- visual tool, competitor plotted on decimation of information about competitor, industry trend, and external
graph with the key dimensions, like price or product range, business environment, support strategic planning and helps company to
cluster firms represent strategic group white Spaces, or maintain or gain competitive edge, also known as business intelligence

unoccupied areas main indicates strategic gap

sources - social media, Internet, information brokers, industrial espionage9

unethical, or illegal- and investigator service services

market segment- distinct group of customers within a broader

market who share similar needs preference or buying behave.
monitoring competitors for strategic plannin
Can be based on demographic, behave, geography, lifestyle, and their primary objective- profitability, or long-term strategy like market,
values.

penetration building, etc

Where and how they add value to the customer-like pricing, speed, quality,
Strategic customer.- have critical impact on business strategy., etc
and user but influence, bank decision, channel power, volume Which computers are your customer more interested in?-favorable and less
sales, for example, large distributor, like Walmart or Amazon or attractive
Porter’s Five Forces framework helps assess the competitive government buyer

Cost structure and liquidity position.- Cash flow and access to capita
intensity and profitability
type of supply relationship-risk in the supplie
1. Threat of new entrants - bring added capacity, resource and strategic gaps- un served or underserved areas in the strategic future intention-strategic planning targeting segmentation, leadership,
desire to gain market share, causing disrupt existing player
group or marketplace, represent potential opportunity for committed to growt
factors increasing threat are low capital requirement, few repression and diversify their offering. Gap is due to rapid how actions impact strategy-adapt or restructur
constant, weak loyalty among customer
market, change, shifting consumer, preference, lack of how much better to win customer-USP and community advantag
to reduce the threat- EOS, product differentiation, high innovation.

our competitor for business model emerging-disruptive, innovation, startup

switching cost, government regulation, cost disadvantage, and technological shif
independent of size, high Requirement, access to distribution strategic types

from customer perspective would you choose your product?-customer pain

channel can help to reduce threa point., irritate your current customer or not

Baring power of suppliers.- can influence, price, quality and

availability of material
Industry Scenario Planning: Process Steps
high power when fuel suppliers in the market, high switching scenario planning allow company to prepare for various plausible future,
cost to a buyer, offers differentiated products, strong supplier encourage flexibility and resilience in strategic thinkin
brand, can integrate forward, buyer base fragmented with low hyper competition.- dynamic and high competitive environment Examine Global shift.-in nature or societal environmen
bargaining powe where advantage are the rapid created or eroded
identify uncertainty in six stocks environment, force which are potential
Bargaining power of buyers.- candyman lower price or better key drivers- short product, lifecycle, short design cycle, entrance, substitute, buyer, supplier, industry, competitor, other key
quality
frequent disruptive technology, entry of unexpected player, stakeholde
power is high when buyers are large number standardized repositioning by incumbents, redefining of market boundaries
develop plausible assumption- how trend evolv
product, low switching cost, buyer integrated backwards, strategic implication in this are continuous innovation, essential, combine these assumption and make consistent scenari
manual alternative exis flexible, structure, and repetition making a critical, sustainable Analyze industry, dynamic under each scenario.-demand, regulation,
Threat of substitute products or service. - substitute fulfill advantage is temporary focus on dynamic capability

changing structure, etc

the need, types- product for product substitution(replacing Identify sources of competitive advantage.-cost leadership, digital
old with new), substitution of need(reducing dependence on capability, etc
another), generic substitution(choosing one from Manny Predict competitor behave under the changes in regulation demon
competitive rivalry among existing firm - that competition in technology
current players affecting pricing, innovation and profitability
Select most scenario, which should have high Lahood or high impact and
intense when- high fixture storage cost, high exit barrier, lack of use strategic planning.

differentiation, diverse, competitors , slow market growth. Many product life cycle model

computer with similar size power.