Market Dynamics
Copyright by Authors Tom Koplyay and David Goldsmith July 1998
3-1
ETOP
Environmental Threat and Opportunity Profile
Factor
Regulatory
Competitive
External Alliance
Internal Alliance
Entrepreneurial
Info Highway
Financial
Social
Impact
3
-2
7
-6
4
5
7
2
Importance
8
7
6
5
5
4
4
3
Opportunity
24
Threat
-14
42
-30
20
20
28
6
In this ETOP factors are tailored and ordered as to their importance
Regulatory - tremendous opportunity to push for deregulation, led by STPI.
They have had their lesson and learned well
Competitive - AT&T, Sprint
External Alliance - solid, mutually reinforcing, long-term
Internal Alliance - source of friction and reduction of ability to react
Entrepreneurial - Stentor now much more entrepreneurial (all three elements)
Info Highway - mergers and acquisition for cable, cellular, infotainment
Financial - ability to increase leverage through debt
Social - universal access concept, downsizing, leanness all socially acceptable
Copyright by Authors Tom Koplyay and David Goldsmith July 1998
3-2
ETOP: Pros and Cons
Pros
•
Help to determine the key
Cons
•
factors of threats and opportunities •
•
interactions between factors
•
It can’t reflect the dynamic environment Good tool to qualify the factors related to company’s strategy
It doesn’t show the
•
It’s a subjective analysis tool
Can consider many factors for each special case
Copyright by Authors Tom Koplyay and David Goldsmith July 1998
3-3
Porter Competitive Analysis
5 Forces Model of Competition
FIRMS IN OTHER
FIRMS IN OTHER
INDUSTRIES OFFERING
INDUSTRIES OFFERING
SUBSTITUTE PRODUCTS
SUBSTITUTE PRODUCTS
SUPPLIERS
SUPPLIERS
RIVALRY
RIVALRY
AMONG
AMONG
COMPETING
COMPETING
SELLERS
SELLERS
BUYERS
BUYERS
POTENTIAL
POTENTIAL
NEW ENTRANTS
NEW ENTRANTS
Copyright by Authors Tom Koplyay and David Goldsmith July