Strategic Management Course Overview and Strategy Concept
Strategic Management Course Overview and Strategy Concept
Strategic Management Course Overview and Strategy Concept
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Quick test if two potential segments are one<br />
business or two „businesses“: direct competitors are<br />
„inside“ this boundary, indirect competitors are „outside“<br />
� “Are the competitors in the two potential industry<br />
segments different or the same”? <strong>and</strong><br />
� “Do the competitors have roughly similar market<br />
share positions in the two potential segments”?<br />
� If so, two industry segments are probably one single<br />
business segment; if not, they are two different<br />
business segments<br />
Source: Bain & Company, Business Definition; Richard Koch, The Financial Times Guide to <strong>Strategy</strong><br />
© 2007 Prof. Dr. Bernd Venohr<br />
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