Edinburgh Business School MBA AUC Academic Partner Strategic Planning Module 5 – Part 1 The Company and the Market Instructor: Moataz Darwish, MBA Introduction – Moataz Darwish The Model EBS MBA / AUC Introduction – Moataz Darwish 2 Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. The Market The Demand Curve Competitive Reaction Segmentation Product Quality Product Life Cycles Portfolio Models Supply Markets and Prices Market Structures The Role of Government The Structural Analysis of Industries Strategic Groups First Mover Advantage An Overview of Macro and Micro Models 5/61 Environmental Threat and Opportunity Profile: Part 2 EBS MBA / AUC Introduction – Moataz Darwish 3 The Market  The market mechanism is the principal method by which resources are allocated in industrialized economies.  An understanding of how markets operate provides managers with insights into the behavior of  Customers  Competitors  Role of Government. EBS MBA / AUC Introduction – Moataz Darwish 4 The Market Corporate Level  Are we in the right markets?  What resources should be allocated to various markets? Business Unit Level  What price should we be charging for our product?’  How much should we be spending on marketing?’ Functional Level EBS MBA / AUC Introduction – Moataz Darwish 5 Contents 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. The Market The Demand Curve Competitive Reaction Segmentation Product Quality Product Life Cycles Portfolio Models Supply Markets and Prices Market Structures The Role of Government The Structural Analysis of Industries Strategic Groups First Mover Advantage An Overview of Macro and Micro Models 5/61 Environmental Threat and Opportunity Profile: Part 2 EBS MBA / AUC Introduction – Moataz Darwish 6 The First Step Develop the role of Demand and Supply analysis EBS MBA / AUC Introduction – Moataz Darwish 7 The Demand Curve  Demand Curve:  Relation between the price of a good and th