Global strategy class3
January 19, 2015
Five Forces Model of Industry Environment
1. Threat of new entrants
2. Threat of substitute.
* Availability of a product that the consumer can purchase instead of the industry’s product.
* Substitute products are goods or services from outside a given industry that perform similar products and services.
3. Bargaining power of customers (buyers)
4. Bargaining power of suppliers
5. Intensity of competitive rivalry.
What lesson do you learn from this video in light of strategic management? (Context of substitute)
* Focus too much on yourself that you may miss out opportunities.
* Company is priorities their products than the competitor.
* Gorillized (different category that ...view middle of the document...
If changing to the digital camera, it will contradict their core products.
* It will change the mode of the company that they are well known since the beginning of the establishment of company.
* They saw the technology is coming but they chose not to see it. They chose this conscious choice because it will change the whole image of Kodak. They are fear and scare for the change!
* They knew a lot of the film, they are expert. In the other hand, they know nothing about the digital camera.
* Future objective, current strategy, assumptions, capabilities, these 4 lead to response.
Even competitor can copy your product.
Assuming Sony is your competitor, try to analyze future objective, current strategy, assumptions, capabilities and response.
* Quicker decision making and execution
* Video network
* Faster launching
* Cut cost
* Joint venture (Sharp, Ericsson, and Samsung)
* Lack of the innovation: 2 owners that need time for all the process.
* Diversify the products but more focus on the television.
* Focus more on investing more on design than the software.
* No strong band image and there is no connection among the products.
* No connection in customer mind
* No concrete direction, try to do everything, it make confusion and complexity
* Operating System
* Solid communication with customers.
* Joint venture with Samsung and sharp. Sometimes competitor can join together for the better profit.
* Cut cost as much as possible, but still aim in innovate and quality.
Joint venture with Ericson and ensure that launch the products faster than before to compete with Samsung and Apple.
* Have the great and robust operating system that is one of the unique key!