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Questions and Answers
What is assessed for a country in the PESTEL analysis?
What is assessed for a country in the PESTEL analysis?
What determines the industry's structural attractiveness from the point of view of existing companies?
What determines the industry's structural attractiveness from the point of view of existing companies?
Who are referred to as 'Incumbents' in the context of the Five Forces Framework?
Who are referred to as 'Incumbents' in the context of the Five Forces Framework?
What does the profit margin formula calculate?
What does the profit margin formula calculate?
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What does the Five Forces Analysis assess for existing industry firms?
What does the Five Forces Analysis assess for existing industry firms?
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What determines the buyer power in the Five Forces Analysis?
What determines the buyer power in the Five Forces Analysis?
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What do strategic groups in an industry help identify?
What do strategic groups in an industry help identify?
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Which factor is NOT considered in determining the competitive rivalry in the Five Forces Analysis?
Which factor is NOT considered in determining the competitive rivalry in the Five Forces Analysis?
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What does the bargaining power of suppliers determine?
What does the bargaining power of suppliers determine?
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What is a strategic group map used for within an industry?
What is a strategic group map used for within an industry?
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Study Notes
PESTEL Analysis
- A country's political, economic, social, technological, environmental, and legal factors are assessed.
Industry Attractiveness
- The industry's structural attractiveness is determined by the Five Forces Analysis from the point of view of existing companies.
Five Forces Framework
- Incumbents refer to existing companies in the industry.
Profit Margin
- The profit margin formula calculates the difference between revenue and cost.
Five Forces Analysis
- The analysis assesses the threat of new entrants, bargaining power of suppliers, threat of substitutes, buyer power, and competitive rivalry for existing industry firms.
Buyer Power
- Buyer power is determined by factors such as the number of buyers, their concentration, and the importance of each buyer to the industry.
Strategic Groups
- Strategic groups help identify firms with similar characteristics, such as business models, production processes, or market focuses, within an industry.
Competitive Rivalry
- Government policy is NOT considered in determining the competitive rivalry in the Five Forces Analysis.
Bargaining Power of Suppliers
- The bargaining power of suppliers determines how much control they have over prices and other aspects of the industry.
Strategic Group Maps
- Strategic group maps are used to visualize and identify firms with similar characteristics within an industry.
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Description
Test your knowledge of environmental analysis in competitive strategy development with this quiz. Topics include external and internal environments, PESTEL analysis, industry analysis, and the Five Forces Framework.
