Module 1: Industry Strategy
Learning Goals
This module will introduce the building blocks that explain how value is created in an economy. It will also help you identify means of analyzing an industry as well as highlight some tools that help in Industry Analysis. Industry Analysis will be an important part of your Buisness Plan. The goal of this module is to give you a conceptual understanding of how value is created and captured as well as some terminology and tools to perform an Industry Analysis.
1/26: Value Creation
For part of the class, we will discuss an academic article that presents a well-reasoned view of how value is created in a simple economy. We will go through some fun short exercises that illustrate when value is created, how much and who appropriates value.
Required materials:
Brandenburger & Stuart Article
Slides: ind-strgy-value-creation
1/28: Industry Analysis Tools
In this part of the class, we will look at things that affect average firm profitability in an Industry. We will define what an industry is and identify some tools as well as sources for performing Industry Analysis.
Required materials: H-Porter’s 5 Forces Model
Slides: ind-strgy-ind-analysis
2/2: Analysis for Entrepreneurs
This class we will look at Industry Analysis and go through a checklist for doing Industry Analysis in the Automobile Industry. We will look at how we should define our Industry, whose perspective should we take and how should we analyze the Five Forces in this Industry. Since this is a fairly well known Industry, it is easy to identify suppliers, buyers, rivals and possible new entrants, however I have included a summary of the 2010 Industry report which will serve to highlight a few points. However for many industries we do not have a clear idea for what the Industry structure is or who are the buyers or suppliers. We will have the Business Reference Librarian come and give a presentation on research tools we have to give us this information. This will be useful in the Industry Creation report assignment
Required Materials:
Slides: ind-strgy-entrepreneurs