On Competition

Submitted To: Prof. Rashmi Menon Submitted by: Diana Christian-5

Five Forces
there are five underlying factors that affect an industry and firm's profitability: y Threat of new entrants y Bargaining power of suppliers y Bargaining power of buyers y Threat of substitute products or services y Rivalry among existing competitors

Power of Information
Providing the right information at the right time to the right people can provide a firm a significant competitive advantage in: y Lowering costs y Supporting differentiation strategies y Extending scope or reach of the firm y Fostering new businesses

The Competitiveness of Location

locale should play a key role in corporate strategy. Global companies are headquartered and often perform much of their work from headquarters. To compete globally, firms must: Find a unique competitive position Develop and maintain a long-term perspective. Developing and educating new market can take time Don't market the same way in all countries Innovate and perform core activities in your headquarters Perform non-noncore activities in other areas to extend your influence

y y

y y y

Competitive Solution to Society Problems

Green y A clean environment doesn't need to increase costs and reduce competitiveness y Contamination generally points to sloppy design and poor production processes y Improving productivity can reduce pollution, help you to become more efficient, and to better compete y Regulations are necessary to motivate innovation Health Care y The threat of malpractice lawsuits unnecessarily increase medical costs