Independent Study--Competitive Strategy Chap 7&8 Structural Analysis Within industries&Industry Evolution

In industry structural analysis, the primary task is to identify the company's key strategic dimensions because it provides an overall picture of the firm's position in the industry. Strategic dimension--specialization, brand identification, push versus pull, channel selection, product quality, technological leadership, vertical integration, cost position, service, price policy, financial leverage, relationship with parent company and relationship to host government.
We need to identify strategic groups, evaluate the profitability of each group and firm within a group.
How to identify strategic groups? First,define the industry and competitors. Second, find all the firms that compete in the industry. For example,Safeway is in Grocery industry and the competitors include The Kroger Co.,SUPERVALU Inc.and Wal-Mart Stores Inc. Then, assess the height and composition of mobility barriers. Having high mobility barriers can deter companies from entering the industry or the market. Moreover, assess the relative strength of buyers and suppliers. Also, assess the potential threat of sub products and different quality levels. Finally, evaluate the rivalry among firms within specific strategic groups, evaluate the level of direct competition for the same customer, evaluate the degree to which products are differentiate, evaluate the size and number of firms in a strategic groups and identify the extent to which strategies diverge.

For predicting the probable course of industry evolution is the familiar product life cycle. An industry passes through a number of phases or stages--introduction, growth, maturity and decline. Apple. INC., has been a very successful company by introduced new products--iPod,iTune,iPhone and iPad. First, introduce new product, penetration of the product, then, growth stop, finally, new substitute innovation product appear. there are five important external reasons why long-run industry growth changes which include particular age groups buyers, changes in the lifestyle, tastes, compare the cost and quality change in the relative position of substitutes, penetration of the new customers rather than repeat customers and product change. To promote industry growth it can enhance product differentiation, increase demand by using advertising, mew marketing channels and lower the cost of the product or government policy change. Industry structural change can be influenced by firms' strategic behavior.