1、Prof Bruce A Calway Consulting Academic and Researcher Nanjing University of Chinese Medicine. References Recommended: Jelassi, T. External, internal, Formal, informal. Success in idea generation is more likely to be achieved within an established system.,External Sources,Customers, Competitors, Cha

2、nnel members, Trade associations and shows, Inventors, Formal consumer research into market changes, or consumer opinion.,External Sources: Research,Perception request solution for specific problem,External Sources: Lead Users,Long-term customer relationships lead to market insight Lead Users (von H

3、ippel 1986) at the leading edge of a trend problems they have solutions they seek useful when developing pioneering products,External Sources: Competitors,Information Systems Track current reports from both internal i.e., the profit potential for companies in that industry is higher. As this figure

4、indicates, the interaction and strength of five forces influences profitability.,Rivalry among existing competitors,Bargaining power of suppliers,Bargaining power of channels and end users,Threat of substitute products or services,Barriers to entry,() Reduces barriers to entry such as the need for a

5、 sales force, access to channels and physical assets. () Internet applications are difficult to keep proprietary from new entrants. () A flood of new entrants has come into many new industries.,(+) Eliminates () Shifts powerful bargaining channels or power to improves consumers. bargaining () Reduce

6、s power over switching traditional costs. channels.,() Reduces differences among competitors as offerings are difficult to keep proprietary. () Migrates competition to price. () Widens the geographic market, increasing the number of competitors. () Lowers variable cost relative to fixed cost, increa

7、sing pressure for price discounting.,(+/) Procurement using the Internet tends to raise bargaining power over suppliers, though it can also give suppliers access to more customers. () The Internet provides a channel for suppliers to reach end users, reducing the leverage of intervening companies. ()

8、 Internet procurement and digital markets tend to give all companies equal access to suppliers, and gravitate procurement to standardised products that reduce differentiation. () Reduced barriers to entry and the proliferation of competitors downstream shifts power to suppliers.,(+) By making the ov

9、erall industry more efficient, the Internet can expand the size of the market. () The proliferation of Internet approaches creates new substitution threats.,Source: Reprinted from M. Porter (2001),Internets impact on the 5 forces,Competitors,Supplier,Buyer,Complementors,Firm,Source: Adapted from A.

10、Brandenburger and B. Nalebuff (1998), p. 17,Complementing Porters model:Co-opetition value network framework,Responsibilities for External Analysis at Different Managerial Levels,Lower Level Managers/Supervisors Observe and interact Collect and consolidate Middle Managers Coordinate Share with organ

11、izational units Gatherer and disseminator Monitor general environmental sectors Make needed strategic changes Upper Management Evaluate opportunities and threats,Benefits of Doing An External Analysis,Proactive managers anticipate change and plan accordingly Provide information for Planning Decision

12、 making Strategy formulation Acquire and control needed resources Cope effectively with increasingly dynamic environment Make a difference with higher performance,Challenges of Doing an External Analysis,Rapid environmental changes are difficult to keep up with = IT helps Amount of time that analysis can consume= IT helps Forecasts and trend analysis are not actual fact Discussion: How IT Helps?,Internal Analysis,Exa