The general conditions for competition that influence all businesses that provide similar products and services.
Havard professor Michel E.Porter propelled the concept of industry environment into the foreground of strategic thought and business planning. The cornerstone of his work first appeared in the Havard Business Review, in which Porter explains the five forces that shape competition in an industry. His well-defined analytic frame-work helps strategic managers to link remote factors to their effects on a firms operating environment.
More from this Section
- Legal responsibilities
Legal responsibilities is another one social commitment for strategic managers .
- Joint venture
A specific type of strategic alliance in which the partners form a separate, independent organization for some business purpose is
- Market growth rate
The projected rate of sales growth for the market being served by a particular business.
- Economic Factors
Economic factors concern the nature and direction of the economy in which a firm operates.Bcause consumption patterns are effected by the relative affluence of various market segments ,each firm must consider economic trends in the segments that affect its industry.
- The Balanced Scorecard
A set of four measures directly linked to the company’s strategy: financial performance, customer knowledge, internal business processes .and learning and growth.
- Concentric diversification
A grand strategy that involves the operation of a second business that benefits from access to the first firm’s core competencies.
RFID is an automatic identification method in which information can be stored and remotely retrieved. It’s similar to, but more sophisticated than,