363-0404-00L Industry and Competitive Analysis
| Semester | Spring Semester 2019 |
| Lecturers | |
| Periodicity | yearly recurring course |
| Course | Does not take place this semester. |
| Language of instruction | English |
| Comment | Due to didactic reasons originating from the group-work based approach, the number of participants is limited to 30. First come first served by order of enrollment in myStudies. Experience in statistical analysis with tools such as SPSS or equivalents is an advantage. |
| Abstract | Industry and Competitive Analysis (ICA) is a part of any strategy development. It contains a very practical set of methods to quickly obtain a good grasp of an industry. The purpose of ICA is to understand factors that impact on the financial performance of the industry, and as well the financial performance of firms within the industry. |
| Objective | Students develop an understanding of how the structure of industries impact on firm and industry-level performance. Students get familiar with, and obtain practical skills in analyzing industries and firms within them. Students develop in-depth knowledge of one industry. |
| Content | Industry and competitive analysis (ICA) is a part of any strategy development in firms and other organizations. It contains a very practical set of methods to quickly obtain a good grasp of an industry, be it pharmaceuticals, information and communication technology, aluminum, or even the beer industry. The purpose of ICA is to understand factors that impact on the performance of the industry, and as well the performance of firms within the industry. Firms in an industry can be categorized in so called “strategic groups” based on the strategies they are pursuing. Each strategic group is associated with a certain level of performance, and the firms' “membership” in such groups can be used to predict their moves within the industry. Moreover, managers use ICA to allocate resources, reach strategic goals such as market share or profitability, and help their firms improve their position within the industry. |
| Literature | Session 1: Introduction to competitive strategy Chapter 2 of Porter (2004) Porter, M.E. 1996. What is strategy. Harvard Business Review. 74 (6): 61-78. Reeves, M., Love, C., & Tillmanns, P. (2012). Your strategy needs a strategy. Harvard Business Review, 90(9), 76-83. Session 2: Understanding industry analysis Chapter 1 & 3 of Porter (2004) Porter, M.E. 2008. The five competitive forces that shape strategy. Harvard Business Review. 86 (1): 78-93. Session 3: Understanding strategic groups and firm membership Chapter 7 of Porter (2004) Short, J. C., David J. K., Timothy B. P., and Tomas M. H. 2007. Firm, strategic group, and industry influences on performance. Strategic Management Journal, 28: 147-167. Harrigan, K. R. (1985). An application of clustering for strategic group analysis. Strategic Management Journal, 6(1), 55-73. Session 4: Strategic position of the firm Chapter 15 of Porter (2004) Coyne, K. P., & Horn, J. (2009). Predicting your competitor's reaction. Harvard Business Review, 87(4), 90-97. McNamara, G., Deephouse, D. L., & Luce, R. A. (2003). Competitive positioning within and across a strategic group structure: the performance of core, secondary, and solitary firms. Strategic Management Journal, 24(2), 161-181. Session 5: Global industry and firm strategy Chapter 13 of Porter (2004) Makhija, M. V., Kim, K., & Williamson, S. D. (1997). Measuring globalization of industries using a national industry approach: Empirical evidence across five countries and over time. Journal of international business studies, 679-710. Spencer, J. W. (2003). Firms' knowledge-sharing strategies in the global innovation system: empirical evidence from the flat panel display industry. Strategic Management Journal, 24(3), 217-233. Session 6: ICA and entrepreneurial opportunities Hitt, M. A., Ireland, R. D., Sirmon, D. G., & Trahms, C. A. (2011). Strategic entrepreneurship: creating value for individuals, organizations, and society. The Academy of Management Perspectives, 25(2), 57-75. Alvarez, S. A., Barney, J. B., & Anderson, P. (2013). Forming and exploiting opportunities: The implications of discovery and creation processes for entrepreneurial and organizational research. Organization Science, 24(1), 301-317. |
| Prerequisites / Notice | Due to didactic reasons originating from the group-work based approach, the number of participants is limited to 30. First come first served by order of enrollment in myStudies. Exchange students may register by sending an e-mail to Christian Wedl (cwedl@ethz.ch), should they face problems with registration at myStudies. Note that emails should be sent individually, no group registration is welcome. E-mails that are sent before the starting date of registration at myStudies will not be accepted. - There is no exam in this course. The students are graded on an industry report, and a mandatory presentation of the industry analysis to an expert panel. This presentation takes place during the last session of the course. - Knowledge of SPSS or similar statistical packages is an advantage. - This is an interactive class and class participation is important. Students should judge if full commitment can be made to attending the lectures before registration. |