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Strategic Management , Sixth Edition
Charles W. L. Hill, University of Washington
Gareth R. Jones, Texas A&M University
Chapter Outlines
Chapter 2: External Analysis: The Identification of Industry Opportunities and Threats

I. Overview

II. Defining an Industry
  1. Industry and Sector
  2. Industry and Market Segments
  3. Changing Industry Boundaries
III. Porter's Five Forces Model
  1. Risk of Entry by Potential Competitors
    1. Brand Loyalty
    2. Absolute Cost Advantages
    3. Economies of Scale
    4. Customer Switching Costs
    5. Government Regulation
  2. Rivalry Among Established Companies
    1. Industry Competitive Structure
    2. Industry Demand
    3. Exit Barriers
  3. The Bargaining Power of Buyers
  4. The Bargaining Power of Suppliers
  5. Substitute Products
  6. A Sixth Force: Complementors
IV. Strategic Groups within Industries
  1. Implications of Strategic Groups
  2. The Role of Mobility Barriers
V. Industry Life Cycle Analysis
  1. Embryonic Industries
  2. Growth Industries
  3. Industry Shakeout
  4. Mature Industries
  5. Declining Industries
VI. Limitations of Models for Industry Analysis
  1. Life Cycle Issues
  2. Innovation and Change
  3. Company Differences
VII. The Macro-Environment
  1. Economic Forces
  2. Technological Forces
  3. Demographic Forces
  4. Social Forces
  5. Political and Legal Forces
VIII. The Global and National Environments
  1. The Globalization of Production and Markets
  2. National Competitive Advantage
    1. Factor Endowments
    2. Local Demand Conditions
    3. Competitiveness of Related and Supporting Industries
    4. Intensity of Rivalry


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