MT 330
Marketing in the Technology Enterprise

Session 3:
Industry Analysis

Starting with this session we’re going to shift our focus from the analysis of the technology company’s capabilities to analyzing the markets (customers, industries) to which those capabilities might apply (see the highlighted activities). I refer to this process as industry (market or customer) value analysis.

Of all the factors in a firm’s business environment, the dynamics of its own industry are felt
the most strongly and immediately and influence its well-being and direction the most. This
lecture is concerned specifically with industry analysis.

In it we introduce two approaches to industry analysis.  The first, one that has has been the most widely adopted by business strategists, was developed by Michael Porter. It was originally known as the five-forces model, but more recently Porter has added a sixth force (complements).

A second, more recent approach is particularly well-suited to the technology firm. Collis and Montgomery complement Porter's external orientation toward the sources of  competitive advantage with a resource-based perspective.

Taken together, these two approaches expose sources of competitive advantage that form the basis for buiilding a uniquely powerful value proposition (Sessions 7 and 8).

Readings: ® = required; scan = read introduction and conclusions; scan inside pages;
                  (o) = optional;; = Adobe Acrobat File. (Click here to download Acrobat Reader.)

Scan:

Porter, Michael A., On Competition, Harvard Business Review Book Series, 1998,
Chapter 1 ("How Competitive Forces Shape Strategy"), 21-38.

Collis, David J. and Cynthia Montgomery, "Competing on Resources: Strategy in the 1990s," Harvard Business Review, July-Aug., 1995, 118-128.

Lecture Notes:

   Industry Analysis (indanal.ppt)

Discussion Question (Post replies and comments under this discussion topic on Prometheus):

How does Apple's decision to shift to the Intel microprocessor change the industry forces operating on it, for better and/or for worse? Do you think this was a good decision for Apple?