Core concepts
- 01Porter's Five Forces: Industry rivalry, threat of new entrants, threat of substitutes, bargaining power of suppliers, bargaining power of buyers.
- 02Generic Strategies: Cost leadership, Differentiation, Focus (cost focus / differentiation focus).
- 03Value Chain: primary activities + support activities — locate cost & differentiation drivers.
- 04SWOT: internal (strength, weakness) + external (opportunity, threat).
- 05PESTLE for macro environment scanning.
Flowchart summary
Porter's 5 Forces Threat of New Entrants | Suppliers -- Industry -- Buyers bargaining Rivalry bargaining | Threat of Substitutes
Exam-critical pointers
- ⭐Stuck in the middle (Porter): firms that fail to choose one generic strategy underperform.
- ⭐Value chain analysis links cost behaviour to activities and drivers.
- ⭐TOWS Matrix translates SWOT into actionable strategies (SO, ST, WO, WT).
- ⭐Distinguish core competence (Prahalad & Hamel) from distinctive competence.
Make it click