Case Study

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Figure 15.1 Case Study Analysis

Recommendations

Figure 15.1 is only one example of how a case could be analyzed. The situational analysis is driven by corporate and business level strategy. The corporate level component can be addressed by Porter's 5 forces model. This model examines the structural characteristics of an industry. To address business level strategy, competitive dynamics is utilized. The benefit of cornpetitive dynamics is that it examines decision making over time.

Based on the structural traits of the industry and the competitive dynamics that exist within it, it is possible to measure the amount of wealth that has been created or

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Situational Analysis

Corporate Level Strategy Overview

lndustry Structure

. Bargaining power of buyers

. Bargaining power of suppliers , Threat ofnew entranls . Industry rivalry . Threat of substitute products

Business Level Strategy Overvierv Cornpetitive Dynamics

r The analysis of moves and reactions of competitors within an industry over time

Wealth Creation

. Cumulative profit

. Cumulative cash flow

. Marketcapitalization

Conclusions

, Comparison of firms to industry average . ComDarison of firms to each other