Strategic Management Competitiveness and Globalization – Concepts only – Chapter 2

General Environment
composed of dimensions in the broader society that influence an industry and the firms within it
Industry Environment
set of factors that directly influence a firm and its competitive actions and competitive responses: the threat of new entrants, the power of suppliers, the power of buyers, the threat of product substitutes and the intensity of rivalry among competitors
Opportunity
a condition in the general environment that, if exploited, helps a company achieve strategic competitiveness
Threat
a condition in the general environment that may hinder a company’s effort to achieve strategic competitiveness
Demographic Segment
segment concerned with a population’s size, age structure, geographic distribution, ethnic mix and income distribution
Economic Environment
segment that refers to the nature and direction of the economy in which a firm competes or may compete
Political/legal Segment
the arena in which organizations and interest groups compete for attention, resources, and a voice in overseeing the body of laws and regulations guiding the interactions among nations as well as between firms and various local governmental agencies
Socio-cultural Segment
segment concerned with a society’s attitudes and cultural values
Technological Segment
Segment that includes the institutions and activities involved with creating new knowledge and translating that knowledge into new outputs, products, processes, and materials
Global Segment
Segment that includes relevant new global markets, existing markets that are changing, important international political events, and critical cultural and institutional characteristics of global markets
Physical environment segment
Segment that refers to potential and actual changes in the physical environment and business practices that are intended to positively respond to and deal with those changes
Industy
group of firms producing products that are close substitutes
Strategic group
set of firms emphasizing similar strategic dimensions to use a similar strategy
Competitor intelligence
set of data and information the firm gathers to better understand and better anticipate competitors’ objectives, strategies, assumptions, and capabilities
Complementors
the network of companies that sell complementary goods or services or are compatible with the focal firm’s own product or service