McNamee, P. and McHugh, M. (1990). The group competitive intensity map: a means of displaying competitive position, International Review of Strategic Management, 1, Wiley, Chichester.
See also: business de®nition, competitor analysis, competitor pro®ling, industry analysis, industry mapping, portfolio analysis, strategic group mapping and value chains.
A form of forecast which analyses the history of something similar, or the same product in another market (for example, what happened when product X was launched in the USA Ð now what is likely to happen when we launch in the UK?). It is used in a minor way when the results of a test market are translated to the total market. Most applications are in-depth studies of a previous or analogous situation.
Chambers, J. C., Satinedes, K. M. and Smith, D. D. (1971). How to choose the right forecasting technique, Harvard Business Review, July± August.
An approach to analysing the structure of an industry. The basic model examines the balance of power between suppliers, buyers and competitors in the industry. These are three of the `®ve forces'. The remaining two
Porter's contribution was offering a comprehensive basis for analysis
are substitutes and entry barriers. The principles of this approach were drawn together by Porter (1980), although few of the components were new. Porter's contribution was offering a comprehensive basis for analysis out of a series of separate ideas. Industry analysis now underpins most modern thinking on strategic analysis.
Hofer, C. W. and Schendel, D. (1978). Strategy Formulation: Analytical Concepts, chapter 5, West Publishing, St Paul, Minnesota.
Hussey, D. E. (1991). Introducing Corporate Planning: Guide to Strategic Management, 4th edition, chapter 5, Pergamon Press, Oxford.
Hussey, D. E. (1994). Strategic Management: Theory and Practice, 3rd edition, Pergamon, Oxford.
McNamee, P. B. (1988). Management Accounting: Strategic Planning and Marketing, chapter 4, Heinemann Professional Publishing, Oxford. Porter, M. E. (1980). Competitive Strategy, Free Press, New York.
See also: business de®nition, competitor analysis, competitor pro®ling, group competitive intensity map, industry analysis, industry mapping, portfolio analysis, strategic group mapping and value chains.
This approach predated Porter's work, but was re®ned as a result of his structural analysis of industry concept. It expands the `®ve forces' diagram to model all the key groups of `actors' in the chain, from suppliers through to ®nal buyers, in a block diagram, and adds a further dimension of those who in¯uence a buying decision but do not themselves purchase: general practitioners who prescribe drugs, architects who specify a lift, consultants who recommend a computer system, for example.
Key factual data are entered on this diagram in summary form, so that all the strategic elements of the industry are portrayed on one piece of A3 paper. Some industries are too complex to ®t on one sheet, but these are the exception rather than the rule.
The approach is often used in conjunction with competitor pro®ling. The two techniques in combination provide a series of headings that may be used in a database to store information.
Hussey, D. E. (1991). Introducing Corporate Planning: Guide to Strategic Management, 4th edition, chapter 5, Pergamon Press, Oxford. Hussey, D. E. (1994). Strategic Management: Theory and Practice, 3rd edition, chapters 9 and 10, Pergamon, Oxford.
See also: business de®nition, competitor analysis, competitor pro®ling, group competitive intensity map, industry analysis, portfolio analysis, strategic group mapping and value chains.
Key success factors
See critical success factors.
Learning curves
See experience curves.
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