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Qualitativeresearchersaimtogatheranin-,notjustwhat,where,,smallerbutfocusedsamplesaremoreoftenusedthanlargesamples.
Intheconventionalview,qualitativemethodsproduceinformationonlyontheparticularcasesstudied,andanymoregeneralconclusionsareonlypropositions(informedassertions).
Quantitativemethodscanthenbeusedtoseekempiricalsupportforsuchresearchhypotheses.
TheComplicatedVersion:FiveForcesModelandKeyFactors
Source:MichaelPorteradaptedbyCheriSpeier
DeficitsoftheFiveForces
Neglectssocietaltrends
Neglectsnewregulation
Neglectsmacro-economicperspective
Neglectsorganizationalidiosyncracies
Neglectstechnologicalissues
Neglectsthepeoplesideofanindustry
Conclusion:TheIndustryStructurePerspectiveSaysthatSuccessfulStrategiesShould:
Minimizebuyerpower
(.,buildcustomerloyalty)
Offsetsupplierpower
(.,alternativesource(s))
Avoidexcessiverivalry
(.,attackemergingvsentrenchedsegments)
Raisebarrierstoentry
(.,makepreemptiveinvestments)
Reducethethreatofsubstitution
(.,incorporatetheirbenefits)
Continuumof IndustryStructures
Fragmented
Manyfirms,
nodominant
firm
Fewfirms,
shareddominance (oligopoly,duopoly)
Consolidated
Onefirmorone
dominantfirm
(monopoly)
Source:CharlieCook
Concentration
EntryandExit
Barriers
Product
Differentiation
Information
Perfect
Competition
Manyfirms
Nobarriers
Homogeneous
Product
Perfect
Informationflow
Oligopoly
Duopoly
Monopoly
Afewfirms
2firms
Onefirm
Significantbarriers
Highbarriers
Potentialforproductdifferentiation
Imperfectavailabilityofinformation
TheSpectrumofIndustryStructures
Source:Grant;GSBTechnologyCenter
:BCG’sStrategicEnvironmentsMatrix
Small
Big
SIZEOFADVANTAGE
Many
Few
SOURCES
OF
ADVANTAGE
FRAGMENTEDSPECIALIZATION
apparel,housebuildingpharmaceuticals,luxurycars
jewelryretailing,sawmillschocolateconfectionery
STALEMATEVOLUME
basicchemicals,volumejetengines,foodsupermarkets
gradepaper,motorcycles,standard
wholesalebanking microprocessors
Source:BCG,GSBTechnologyCenter
BCG’sAnalysisoftheStrategicCharacteristicsofSpecializationBusinesses
highlow
ENVIRONMENTALVARIABILITY
ABILITYTO
SYSTEMATIZE
low
high
CREATIVEEXPERIMENTAL
fashion,toiletries,magazines
generalpublishingfoodproducts
PERCEPTIVEANALYTICAL
hightechluxurycars,confectionery
papertowels
Source:BCG,GSBTechnologyCenter
Theconceptofstrategicgroups
Withinanindustry,acompetitorgroupingusingsimilarstrategiesthatdifferfromotherindustrygroups.
Implicationsofstrategicgroups
Theclosestindustrycompetitorsarethoseinthegroup.
Thevariousindustrygroupsaredifferentiallyandcompetitivelyadvantagedandpositioned.
Mobilitybarriersinhibitthemovementofcompetitorsfromonestrategicgrouptoanother.
Source:CharlieCook