Framework for Analyzing Market Dynamics and Strategy PPT

This PPT slide, part of the 50-slide Business Unit Strategic Plan Training PowerPoint presentation, presents the Structure-Conduct-Performance (SCP) model, a framework for analyzing the interactions between industry structure, producer conduct, and overall performance. It highlights how external shocks, such as technological breakthroughs and changes in government policy, can influence these 3 components.

The left section, labeled "Industry," outlines key factors affecting structure. It includes elements like the economics of demand, which covers aspects such as the availability of substitutes and product differentiation. The economics of supply is also critical, emphasizing the concentration of producers and import competition. Industry chain economics further explores the bargaining power of suppliers and buyers, indicating how these dynamics shape market conditions.

Moving to the center, the "Conduct" section focuses on producer behavior. It discusses marketing strategies, pricing, and volume, as well as the importance of advertising and product development. Capacity changes, including expansion or contraction, are also noted, along with strategic decisions regarding entry or exit from the market. Vertical integration is highlighted as a significant conduct strategy, which can involve various forms of joint ventures and long-term contracts.

Finally, the "Performance" section addresses the outcomes of these structures and conducts. It emphasizes financial metrics such as profitability and value creation, along with the role of technological progress and employment objectives. The feedback loop illustrated suggests that performance can, in turn, influence both structure and conduct, creating a dynamic interplay that executives must navigate.

This model serves as a valuable tool for understanding the complexities of market dynamics and guiding strategic decision-making.

This slide is part of the Business Unit Strategic Plan Training PowerPoint presentation.

Download the Full Presentation

EXPLORE MORE SLIDES FROM THIS PRESENTATION

EXPLORE MORE PRESENTATIONS ON

Strategy Development Example Business Unit Strategy Value Creation Joint Venture Product Development Feedback

Are you familiar with Flevy? We are you shortcut to immediate value.

Flevy provides business best practices—the same as those produced by top-tier consulting firms and used by Fortune 100 companies. Our best practice business frameworks, financial models, and templates are of the same caliber as those produced by top-tier management consulting firms, like McKinsey, BCG, Bain, Deloitte, and Accenture. Most were developed by seasoned executives and consultants with 20+ years of experience.

Trusted by over 10,000+ Client Organizations

Since 2012, we have provided best practices to over 10,000 businesses and organizations of all sizes, from startups and small businesses to the Fortune 100, in over 130 countries.

Flevy is the world's largest knowledge base of best practices.

Leverage the Experience of Experts.

Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.

Download Immediately and Use.

Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.

Save Time, Effort, and Money.

Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.

Read Customer Testimonials

"Flevy.com has proven to be an invaluable resource library to our Independent Management Consultancy, supporting and enabling us to better serve our enterprise clients.

The value derived from our [FlevyPro] subscription in terms of the business it has helped to gain far exceeds the investment made, making a subscription a no-brainer for any growing consultancy – or in-house strategy team."

– Dean Carlton, Chief Transformation Officer, Global Village Transformations Pty Ltd.

"FlevyPro provides business frameworks from many of the global giants in management consulting that allow you to provide best in class solutions for your clients."

– David Harris, Managing Director at Futures Strategy

"Flevy is our 'go to' resource for management material, at an affordable cost. The Flevy library is comprehensive and the content deep, and typically provides a great foundation for us to further develop and tailor our own service offer."

– Chris McCann, Founder at Resilient.World

"I have used Flevy services for a number of years and have never, ever been disappointed. As a matter of fact, David and his team continue, time after time, to impress me with their willingness to assist and in the real sense of the word. I have concluded in fact

... [read more]

– Roberto Pelliccia, Senior Executive in International Hospitality

"As a small business owner, the resource material available from FlevyPro has proven to be invaluable. The ability to search for material on demand based our project events and client requirements was great for me and proved very beneficial to my clients. Importantly, being able to easily edit and tailor

... [read more]

– Michael Duff, Managing Director at Change Strategy (UK)

"[Flevy] produces some great work that has been/continues to be of immense help not only to myself, but as I seek to provide professional services to my clients, it gives me a large "tool box" of resources that are critical to provide them with the quality of service and outcomes they are expecting."

– Royston Knowles, Executive with 50+ Years of Board Level Experience

"As a consulting firm, we had been creating subject matter training materials for our people and found the excellent materials on Flevy, which saved us 100's of hours of re-creating what already exists on the Flevy materials we purchased."

– Michael Evans, Managing Director at Newport LLC

"As a niche strategic consulting firm, Flevy and FlevyPro frameworks and documents are an on-going reference to help us structure our findings and recommendations to our clients as well as improve their clarity, strength, and visual power. For us, it is an invaluable resource to increase our impact and value."

– David Coloma, Consulting Area Manager at Cynertia Consulting