Cocacola Company

Corporate Strategy

Session 1.4

The Importance of Industry

On completion of the lecture (with reading) you should be able to:

Describe the key terminology: industry, markets, business;

Outline the factors shaping industry: Porter’s Five Forces, Industry Life Cycle and Industry Recipes;

a) Explain the development features of industry: convergence, concentration, integration;

b) Explain the meaning of the term ‘business model’ and provide examples;

c) Elucidate Miles and Snow’s Strategic Organisations Typologies.

Lecture Content

1. Definitions of key terminology: industry, market business

2. Industry analysis: Porter’s Five Forces: buyers, suppliers, substitutes, potential new entrants and competitor(s) rivalry

3. Alternative Analytical Frameworks: Industry Life Cycle and Recipes

4. Shapers of industry development: drivers and inhibitors

5. Development features:

(i) Convergence-Divergence

(ii) Concentration-Fragmentation

(iii) Vertical/Horizontal Integration – Fragmentation

(iv) International integration – Fragmentation

(v) Expansion-Contraction

6. Business models: essentials and examples

7. Miles and Snow Strategic Organisation Typology: Defender, Prospector, Analyser, Reactor

Reading

De Wit, B. and Meyer, R. (2005), Strategy Synthesis, Thompson, Chapter 8 and Readings 8.1 and 8.2 (at the back of the book)

Johnson, G. Scholes, K. and Whittington, R. (2008), Exploring Corporate Strategy, Chapter 2 (part only).

Lynch, R. (2009), Strategic Management, Chapter 3 (part only).

BlackBoard File

CS L1.4 – The Importance of Industry

Session 1.4 The Importance of Industry

In this lecture we are going to examine the role played by industry in relation to strategy. Industry is considered by some writers to be hugely significant to strategy. Often students will undertake environmental analysis but then fail to place this within the...