This exciting new textbook is built on the belief that strategic management principles are more straightforward than they seem. Unlike other textbooks, it does not overcomplicate the discussion with enigmatic layers of theory or irrelevant perspectives from other disciplines. Instead you will find focused, clearly articulated coverage of the key topics of strategic management, encouraging critical reflection and deeper exploration on your own terms. Fully developed to cover the essentials of any strategic management course, this textbook not only creates understanding of the principles of strategy, but shows you how to apply them constructively in the face of real-world practicalities. Throughout the text, these principles are put into context with illustrations and examples drawn from all over the world and from all kinds of organization – from Shell, Airbus and Tesco to small and non-profit enterprises. With an emphasis on topical, distinctive and engaging features, this text offers: • Over 120 short, topical case studies drawn from every type of organization across more than 20 countries, written especially for this book and supplemented with questions and tasks • Worksheets for strategy analysis that can be used to tackle real-world situations • Learning outcomes, key points and summaries to focus your reading on what matters • Chapter-by-chapter exercises for further study and discussion • Suggestions for further reading to deepen your understanding of the theories underpinning the chapters In addition, tutors will benefit from a fully developed companion website offering lecture slides, teaching notes for case studies and assignments, module plans and links to further cases.
Chapter 3: Industry Sector Environments
Industry Sector Environments
This chapter is designed to enable you to:
- ① Describe the main characteristics of markets and sectors, including (a) structural features, (b) external factors and, in particular, (c) entry and exit barriers.
- ② Understand the strategic implications of the above.
- ③ Understand supply chains and their strategic implications.
- ④ Understand (a) influences on demand and (b) lifecycles in demand.
- ⑤ Analyse markets and competitive behaviour, especially through the application of Porter's 5-forces model.
Case Study: The Global Bicycle Industry
Historically, many countries made bicycles, primarily for local sale. Between 1950 and 2000 annual global output rose five-fold, peaking at 130 million in 2007, stabilizing at 100–110 million.1 More than a billion bicycles are used worldwide, half in China. High volume production now centres on China, ...