To prepare for this Assignment, review “Nokia and the Smartphone Industry” on page 22 of Dyer, Godfrey, Jensen, and Bryce (2016), and complete a personal version of the Rivalry Strategy Tool provided on page 41 of the text. Be sure to consider the potential impact of the Five Forces as a tool for shaping industry competition and strategy development.
Submita 3- to 5-page analysis of the influence of market selection in business strategy development. Your analysis should address the following:
- What is the intensity of rivalry—high, medium, or low—within the smartphone manufacturing industry? Explain your answer using the Rivalry Strategy Tool.
- What is the intensity of supplier power—high, medium, or low—within the smartphone industry? Explain your answer using the Rivalry Strategy Tool.
- What is the importance of correctly identifying and choosing a firm’s industries and markets? Justify your answer with at least one example.
- How does accounting for gaining and sustaining competitive advantage impact the success of business strategy development? Explain.
Rivalry Strategy Tool
Evaluating the Intensity of Rivalry (Mark an X in the
appropriate box for each factor.)
1 2 3 4 5
<40% 40-50% 50-60% 60-70% >70%
1. Number
and Relative Size of Competitors
• Top 4
competitors’ combined industry marketing share
Explanation/Source of Data: _____________________
High Med. Low
<2% 2-5% 5-10% 10-15% >15%
100% 75% 50% 25% 0
Low Med. High
Low Med. High
2. Degree of
Industry Product Standardization
(take the average of bullet points below)
• Difference
between competitors in price of similar products
Explanation/Source of Data: _____________________
• What % of
industry’s products are sold at discount?
Explanation/Source of Data: _____________________
• Customers’
ability to recognize brands from industry
Explanation/Source of Data: _____________________
• Degree of
switching Costs
Explanation/Source of Data: _____________________
<0% 0-1% 1-3% 3-5% >5%
3. Industry
Growth Rate
Explanation/Source of Data: _____________________
<70% 70-80% 80-90% 90-100% >100%
4. Unused
Industry Production Capacity
• % of
industry wide production capacity currently in use
Explanation/Source of Data: _____________________
High Med. Low
5. Degree to
which firms have high fixed costs or products have
high storage costs of are perishable
Explanation/Source of Data: _____________________
High Med. Low
6. Extent of
Exit Barriers
Explanation/Source of Data: _____________________
Fiercely Competitive Neutral Mildly Competitive
Overall Intensity of Rivalry
(take the average of the major factors, items numbered 1
through
6)
