363-0404-00L  Industry and Competitive Analysis

Courses

Catalogue data

Abstract	Industry and Competitive Analysis (ICA) is an essential part of any strategic management process. It contains a very practical set of methods to quickly gain a good grasp of an industry. The purpose of ICA is to understand factors that impact the financial performance of an industry and of firms within that industry, thereby enabling firms to develop effective competitive strategies.
Learning objective	Goals of the course • Students will develop an in-depth understanding of how the structure of an industry impacts both industry-level and firm-level performance • Students will develop practical skills in analyzing industries and firms within them • Students will gain a broad understanding of the impact of digitalization on various industries and develop an in-depth understanding of (at least) one chosen industry • Students will improve the analytical skills needed to successfully compete in the digital age
Content	Industry and Competitive Analysis (ICA) is an essential part of any strategic management process in firms and other organizations. It contains a very practical set of methods to quickly gain a good grasp of an industry, be it pharmaceuticals, information and communication technology, professional services, or even the beer industry. The purpose of ICA is to understand factors that influence the performance of an industry and firms within that industry. Developing such understanding supports firms in developing effective competitive strategies. As the world witnesses tremendous development in digital technologies, many industries are in the midst of transitioning from analogue to digital business models. Digitalization is radically changing what firms produce and the way they organize their business activities. To adapt to these changes, practitioners and scholars alike need a more advanced set of analytical tools to understand the constantly-changing industries. That is why we have developed our course as ICA 2.0, which provides state-of-the-art tools to gain an updated picture of various industries before and after their digital transformation. In this course, we will study theoretical frameworks, examine evidence from empirical research, and benefit from experience shared by our guest speakers. The course is organized as a combination of lectures, case studies, and tutored group work involving the selection and analysis of industries, analysis and development of strategies for selected firms, and presentation of results. Grades: 50% paper/industry report (group) 50% final presentation (group)
Literature	This course is built upon a management classic (Competitive Strategy: Techniques for Analyzing Industries and Competitors by Porter, 2004). We also draw from more recent research findings and practitioner-oriented strategy research. Readings associated with each lecture should be done before the lecture day. To access the journal articles listed below, you have to be within the ETH domain (either directly connected to the ETH network within ETH or using VPN). PDF versions of the Harvard Business Review articles are only available via the class Moodle. Competitive strategy • Chapter 2 of Porter (2004) • Porter, M. E. (1996). What is strategy. Harvard Business Review. 74 (6): 61-78. • Case study: Southwest Airlines Industry Dynamics • Chapter 3 of Porter (2004) • Porter, M. E. (2008). The five competitive forces that shape strategy. Harvard Business Review. 86(1): 78-93. • Case study: Southwest Airlines Strategic groups & firm membership • Short, J. C., David J. K., Timothy B. P., & 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. ICA in the Digital Age • Adner, R., Puranam, P., & Zhu, F. (2019). What Is Different About Digital Strategy? From Quantitative to Qualitative Change. Strategy Science, 4(4), 253-261. • Porter, Michael E., and James E. Heppelmann. (2015) "How Smart, Connected Products Are Transforming Companies." Harvard Business Review 93 (10): 97–114. . • Kim, E., Nam, D. I., & Stimpert, J. L. (2004). The applicability of Porter’s generic strategies in the digital age: assumptions, conjectures, and suggestions. Journal of management, 30(5), 569-589. • Davenport, T. H. (2006). Competing on analytics. Harvard business review, 84(1), 98. Opportunities & Resources • 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 Competitive Analysis • Chen, H., Chiang, R. H., & Storey, V. C. (2012). Business Intelligence and Analytics: From Big Data to Big Impact. MIS quarterly, 36(4), 1165-1188
Prerequisites / Notice	Due to high intensity of the tutoring format, the number of students is limited to 30. Students will be accepted according to the order of enrollment in myStudies. Exchange students can register by sending an e-mail to sherath@ethz.ch if facing problems with registration to myStudies. Registration will be handled individually, case by case. E-mails that are sent before the starting date of registration to myStudies will not be accepted. An electronic confirmation of the registration will be sent out shortly before the start of the semester, which contains an access link to the Moodle page of the course (readings, resources for group works, group assignment). Note that class participation is important. Students should make sure that they can attend each weekly lecture prior to registration.
Competencies	Subject-specific Competencies Concepts and Theories assessed Method-specific Competencies Analytical Competencies assessed Decision-making assessed Problem-solving assessed Project Management assessed Social Competencies Communication assessed Cooperation and Teamwork assessed Personal Competencies Critical Thinking assessed Self-direction and Self-management assessed

Performance assessment

Performance assessment information (valid until the course unit is held again)
Performance assessment as a semester course
ECTS credits	3 credits
Examiners	P. Tinguely
Type	graded semester performance
Language of examination	English
Repetition	Repetition only possible after re-enrolling for the course unit.
Additional information on mode of examination	Grading will be based on: 50% paper/industry report (group) 50% final presentation (group)

Learning materials

Groups

Restrictions

Offered in

Programme	Section	Type
Management, Technology and Economics Master	Technology and Innovation	W