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Liberty university – busi 690 busi690 ch3

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Liberty University – BUSI 690BUSI690CH3hwk.docx

Liberty University – BUSI 690 BUSI690 CH3 hwk

1

The Five Forces Model of Competition

The character and complexities of competitive forces are rarely the same from one industry to another and must be thoroughly understood to answer such questions as: “Where are we now?” Michael Porter’s Five Forces Competitive Model is the most widely used tool in business today in determining the competitive intensity and therefore attractiveness of a particular industry.

2

Strategic Group Mapping

Read the overview below and complete the activities that follow.

A strategic group consists of those industry members with similar competitive approaches and positions in the market. Companies in the same strategic group can resemble one another in any of several ways: They may have comparable product-line breadth, sell in the same price/quality range, emphasize the same distribution channels, use essentially the same product attributes to appeal to similar types of buyers, depend on identical technological approaches, or offer buyers similar services and technical assistance. Illustration Capsule 3.1 presents a two-dimension diagram reflecting how rivals in the U.S. casual dining industry are positioned.

Based on the strategic group map in Illustration Capsule 3.1, which casual dining chains are Cracker Barrel’s closest competitors? Explain your answer.

3

With which strategic group does Panera Bread Company compete the least, according to the map? Explain your answer.

4

Why do you think no casual dining chains are positioned in the area above the Olive Garden group? Explain your answer

5

The kinds of factors that might be reviewed when considering the “Economic” aspect of the PESTEL includeTop of Form

6

The impact of baby boomers getting older on an industry would be classified in which PESTEL factor?

7

Effective use of the PESTEL framework can help us identify

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