What are the key problems in maintaining a competitive advantage in embryonic and growth industry environments?
Prepare a report of 5-10 pages on the following questions by supporting with practical examples.
- Identify a growth industry, a mature industry, and a declining industry. For each industry, identify the following: (1) the number and size distribution of companies, (2) the nature of barriers to entry, (3) the height of barriers to entry, and (4) the extent of product differentiation. What do these factors tell you about the nature of competition in each industry? What are the implications for the company in terms of opportunities and threats?
- What is business model? What are the main building blocks of the business model? Elucidate it clearly and develop your own/or (your organization’s) business model.
- Under what environmental conditions are price wars most likely to occur in an industry? What are the implications of price wars for a company? How should a company try to deal with the threat of a price war?
- Discuss how companies can use: (a) product differentiation, and (b) capacity control to manage rivalry and increase an industry’s profitability.
- What are the key problems in maintaining a competitive advantage in embryonic and growth industry environments? What are the dangers associated with being the leader in an industry?
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