The five forces that analyze the industry's competition in strategic management are

The five forces that analyze the industry's competition in strategic management are

2 thoughts on “The five forces that analyze the industry's competition in strategic management are”

  1. 1. Analysis of the existing competitors in the industry 2. The threat of the newly added 3. Logistics supplier 4. Logistics customers 5. The threat of alternatives
    analyzing and evaluating the strategic environment of the enterprise, and predict the future of these environments The trend of development and the direction of these trends may have on enterprises.

    The external environmental analysis and internal environment or condition analysis of the enterprise.

    The external environment of the enterprise generally includes the following factors or strength: that is, the government -legal factors, economic factors, technical factors, social factors, and the competition in the industry in the enterprise.

    Ip:: It is to find and discover opportunities that are conducive to enterprise development in a timely manner, and threatening to the enterprise to achieve "knowing each other" Opportunities provided by external conditions to avoid threats to enterprises.

    In internal environment of an enterprise is the condition that the enterprise itself has, that is, the quality of the enterprise, it includes all aspects of production and operation activities, such as production, technology, marketing, finance, research and research and and. Development, employee conditions, management capabilities, etc.

    If: It is to discover the advantages or weaknesses possessed by the enterprise so that when formulating and implementing strategies, they can avoid strengths and avoid their weaknesses, and effectively use the various resources of the enterprise themselves.

    The strategic selection

    The strategic selection and evaluation process is essential: it is the strategic decision-making process-explore, formulate and select strategy.

    The strategic choice of a cross -industry business should solve two basic strategic problems:

    The industry of production and operation activities, clarify the nature of the enterprise and the cause they are engaged in, and determine what kind of products or services the enterprise to meet which types of customers; The competitive advantage in the business field is to determine the products or services provided by the enterprise, and to obtain the advantages of the competitors on the basis of what.

  2. The five -force analysis model was proposed by Michael Potter () in the early 1980s, which had a far -reaching impact on the formulation of corporate strategy. The analysis of competitive strategies can effectively analyze the customer's competitive environment. The five -force is: supplier's bargaining ability, buyer's bargaining ability, the ability of potential competitors to enter, alternative replacement capabilities, and the current competitiveness of competitors in the industry. The changes in different combinations of the five forces ultimately affect the changes in industry profits.

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