E2: Chapter 2 - The Nature of the Competitive Environment

2.1 Introduction
2.2 Environmental impact assessment
2.3 Different stages in environmental analysis

• 2.3.1 Analysing the macro-environment
• 2.3.2 Analysing the micro-environment/industry environment
• 2.3.3 Industry life cycle analysis
• 2.3.4 Illustration of external environmental analysis – Example of a car manufacturer
• 2.3.5 Evaluation of environmental models
• 2.3.6 Survival and success factors

2.4 Causes of environmental uncertainty

• 2.4.1 Impact of uncertainty
• 2.4.2 Has uncertainty really increased?

2.5 Competitor analysis

• 2.5.1 The importance of competitor analysis
• 2.5.2 Competitor analysis – key concepts
• 2.5.3 Levels of competitors
• 2.5.4 Gathering competitor intelligence
• 2.5.5 Forecasting competitors’ response profiles

2.6 Competitor accounting

• 2.6.1 Evaluation of barriers to entry
• 2.6.2 Estimate competitors’ costs

2.7 The global economic environment

• 2.7.1 The new global economy

2.8 National competitive advantages

• 2.8.1 Porter’s Diamond
• 2.8.2 Demand conditions
• 2.8.3 Related and supporting industries
• 2.8.4 Factor conditions
• 2.8.5 Firm structure, strategy and rivalry
• 2.8.6 Other events
• 2.8.7 National competitive advantage
• 2.8.8 Losing competitive advantage
• 2.8.9 Porter’s strategic prescriptions
• 2.8.10 Comment on Porter’s Diamond 95

2.9 Country analysis and political risk 96

• 2.9.1 Political risk 96

2.10 Sources of information for environmental analysis 97

• 2.10.1 Environmental scanning 97
• 2.10.2 Accessing environmental information 98
• 2.10.3 Detailed environmental analysis 98
• 2.10.4 Categorisation of information sources 99