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Unit 4: External Assessment

8. Analyse the features that determine the strength of the competitive forces operating in the Notes
industry.
9. "Each industry's attractiveness or profitability potential is a direct function of the
interactions of various environmental forces that determine the nature of competition."
Discuss.

10. Is it feasible to create strategic group in any industry? Explain the rationale behind creating
these groups.
11. Present a critical assessment of industry life cycle analysis.

12. These days, the industry uses a very popular term- hyper-competition. Find out what it
means and elucidate through examples.

Answers: Self Assessment

1. product, distribution, price, promotion 2. two
3. static, innovation 4. mature

5. marginal competitors 6. value net
7. competitive 8. close competitors, less direct competitors
9. Industry structure, industry boundaries, industry attractiveness

10. economic 11. consolidated
12. structural 13. economies of scale
14. threat 15. Switching costs
16. distribution channel

4.10 Further Readings

Books Gregory G. Dess, GT Lumpkin and ML Taylor, Strategic Management–Creating
Competitive Advantage, McGraw-Hill, Irwin, NY, 2003.
Michael Porter, How Competitive Forces Shape Strategy, Harvard Business
Review, 1979.
John Parnell, Strategic Management – Theory and Practice, Atomic Dog Publishing.
USA, 2003.

Pearce JA and Robinson RB, Strategic Management, Mc Graw Hill, NY, 2000.
VS Ramaswamy and S.Namakumari, Strategic Planning, Macmillan, New
Delhi, 1999.

Online links www.businessballs.com/portersfiveforcesofcompetition.
www.investopedia.com/terms/i/industrylifecycleanalysis
www.iimcal.ac.in/community/consclub/reports/ITAndITES

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