Analysing the Organisational Ecosystem Flashcards
(30 cards)
What is an organisational ecosystem?
A dynamic environment of interrelated organisations (customers, suppliers, competitors, regulators) where changes affect each other
Why is ecosystem analysis important in streategy?
It helps firms adapt and survive in changing external environments
What’s the difference between macro and micro envrionment?
Macro = external trends (PESTEL)
Micro = industry-specific dynamics (competitors, customers)
What are ecosystem challenges in the digital age?
Automation, data sharing and collaboration between ecosystems, not just firms
What does PESTEL stand ford?
Political, Economic, Social, Technological, Environmental, Legal
What’s the purpose of PESTEL analysis?
Identify external opportunities and threats that affect long-term strategy
Give a Political example in PESTEL
Regulatory changes or government policy (e.g. subsidies, trade laws)
Give a Technological example in PESTEL
AI and automation changing operations or customer expereience
Application Tip: When is PESTEL most useful?
In new markets or during major economic/technological change
What is LoNGPEST?
PESTEL factors viewed at Local, National and Global levels
What is the purpose of Porter’s Five Forces?
To assess the industry attractiveness and profitability
Name the five forces
1 Rivalry
2 New entrants
3 Substitutes
4 Supplier power
5 Buyer power
Application tip: What industry condition leads to low profits?
High rivalry + strong buyers + strong substitutes
What are complements in Porter’s model?
Products/services that increase demand for your core offering (e.g. apps for smartphones)
When should firms use Porter’s Five Forces?
Before market entry or investment in a sector
What does Porter’s Diamond explain?
Why certain nations succeed globally in specific industries
What are the 4 elements of Porter’s Diamond?
- Factor Conditions
- Demand Conditions
- Related & Supporting Industries
- Firm Strategy, Structure & Rivalry
Application tip: When is Porter’s Diamond relevant?
When evaluating global expansion or supplier location
What is an example of strong factor conditions?
Germany’s engineering expertise and education system
What’s the role of local rivalry in national competitiveness?
Drives innovation and high standards
Why perform competitor analysis?
To assess position, anticipate moves, and build advantages
What 4 areas are assessed in competitor response profile?
Objectives, Assumptions, Strategy, Capabilities
What’s a key exam phrase for competitor threats?
“Ability and willingness to respond”
What are the 4 C’s of competitor intelligence?
Collect > Convert > Communicate > Counter
