Английский язык. Практический курс для решения бизнес-задач
Шрифт:
19. storage n – хранение, складирование; хранилище, площадь склада
store n – магазин, хранилище, склад, запас
store v – хранить, складировать
20. shakeout n – встряска (существенное изменение в рыночных условиях)
21. entrant n – компания, выходящая на рынок или проникающая в отрасль
22. price elasticity – эластичность по ценам
23. monopsony n –
monopsonic a – монопсонический
24. entry barriers (barriers to entry) – барьеры к выходу на рынок
25. exit barriers (barriers to exit) – барьеры к уходу с рынка
26. market equilibrium – рыночное равновесие
27. start-up costs – начальные затраты
28. Minimum Efficient Scale (MES) – минимальный эффективный уровень
Exercise 1. Answer the following questions.
1. What forces influencing the industry did Michael Porter identify? 2. How do economists measure rivalry in an industry? 3. What competitive strategies can a firm adopt to gain an advantage over its rivals? 4. What are the determinants of the intensity of rivalry? 5. How did Michael Porter define the threat of substitutes? 6. What is the power of buyers? 7. How can suppliers exert their influence? 8. What are the entry and exit barriers?
Exercise 2*. Find at least 9 adjectives in the text to the term «competition» and make sentences of your own using them.
Exercise 3. Fill in the following table using Russian industries as examples and briefly describe key characteristics of these industries.
Exercise 4*. Fill in the blanks using terms given below.
Porter’s Generic Strategies
If the primary determinant of a firm’s……. is the……. of the industry in which it operates, an important secondary determinant is its position within that industry. Even though an industry may have below-average profitability, a firm that is optimally……. can generate……. returns.
A firm positions itself by……. its strengths. Michael Porter has argued that a firm’s strengths ultimately fall into one of two headings: cost advantage and differentiation. By applying these strengths, three……. strategies result: cost leadership, differentiation, and focus. These strategies are applied at the……. level.
Cost Leadership Strategy
This generic strategy calls for being the…….. producer in an industry for a given level of quality. The firm sells its products either at average industry prices to earn a……. higher than that of……., or below the…… industry prices to gain market share. In the event of a……., the firm can maintain some profitability while the competition suffers losses. Also, as the industry…….. and prices decline, the firms that can produce more cheaply will remain profitable for a longer period of time. Firms acquire……… by improving process……., gaining unique access to a large source of lower cost materials, making optimal outsourcing and vertical integration decisions, or avoiding some costs altogether. If competitors are unable to lower their costs by a similar amount, the firm may be able to…….. a competitive advantage based on cost leadership.
Each generic strategy has its risks, including the low-cost strategy. For example, as technology……… the competition may be able to…… the production capabilities, thus eliminating the competitive advantage. Additionally, several firms following a focus strategy and…….. various narrow markets may be able to achieve an even lower cost within their………. and as a group gain significant market share.
Differentiation Strategy
A differentiation strategy calls for the development of a product or service that offers unique……. that are valued by……. The……. by the uniqueness of the product may allow the firm to charge a…… price for it. The firm hopes that the higher price will more than cover the extra costs……. in offering the unique product. Because of the product’s unique attributes, if…….. increase their prices the firm may be able to…….. the costs to its customers who cannot find……… products easily.
The risks associated with a differentiation strategy include…….. by competitors and changes in customer tastes. Additionally, various firms…….. focus strategies may be able to achieve even greater differentiation in their market segments.
Focus Strategy
The focus strategy concentrates on a……. segment and within that segment attempts to achieve either a cost advantage or differentiation. A firm using a focus strategy often enjoys a high degree of customer………, and this discourages other firms from competing directly.
Because of their narrow market focus, firms pursuing a focus strategy have lower volumes and therefore less……… power with their suppliers. Some risks of focus strategies include imitation and changes in the……. segments. Furthermore, it may be fairly easy for a……… cost leader to adapt its product in order to compete directly. Finally, other focusers may be able to carve out……. that they can serve even better.
A Combination of Generic Strategies
These generic strategies are not necessarily……. with one another. If a firm…….. to achieve an across-the-board advantage, in this attempt it may achieve no advantage at all. Michael Porter argued that to be successful over the………, a firm must select only one of these three generic strategies. Otherwise, with more than one single generic strategy the firm will be……… and will not achieve a competitive advantage.
Source: www.quickmba.com
Terms:
pass along, suppliers, imitation, broad-market, narrow,