STEEP
The Acronym STEEP is short for
Sociocultural, Technological, Environmental, Economical, and Political
Name the Five Forces in Porter's Model
Threat of New Entrants, Threat of Suppliers, Competitive Rivalry, Bargain Power of Buyers, and Bargaining Power of Suppliers
What is the last D in the 3Ds strategy
Deliver
Name the external factor in STEEP used to identify changes in social trends, such as consumer preferences or attitudes.
Sociocultural
PPF is a static model used to identify long term trends in macro environment (True or false)
False
STEEP, PEST/STEP, and PESTLE/PESTEL are all comparable versions of analysis focused on what?
Macro, external environment
The primary objective of Porter's five forces model is to:
Understand the attractiveness or profit potential of an industry
Name a strategic analytical tool that is typically associated with the diagnosis step in the 3DS
STEEP
5-Forces (PFF)
A common criticism of a S-curve is that
Not all markets, technologies, or products follow an S-curve trajectory.
This tool is designed is to understand and interpret the evolution of a market, product, or technology so as to make informed strategic decisions about where value may be created now and in the future.
S-Curve
The increase of individual participation in movements like BLM and the GAZA crisis is an example of which external factor
Sociocultural
What are two primary factors that determine the threat of new entrants in an industry according to Porter's Five Forces framework
Barriers to entry and economies of scale
Based on what we covered in class so far, which of the following analytical tools is best associated with the deciding how to enter an industry when its highly concentrated
PFF (Five Forces)
Based on class material, validating a hypothesis is associated with what part of strategy?
Deciding (Decide Phase of the 3ds)
What is a primary situation where there would be low buyer power within an industry?
There are high switching costs for buyers
The rate of attrition with an industry is great example of what external factor in the STEEP? (Hint: its not straightforward)
None
Using Porter's Five Forces, analyze the attractiveness of the smartphone industry. Identify two key forces and explain how they influence competition within the industry
One key force is the threat of substitutes, such as other forms of communication or entertainment devices, which can impact the industry's profitability. Another important force is the bargaining power of suppliers, as smartphone manufacturers rely on various components which could affect their cost structure and competitiveness.
This D in the 3Ds entails using an analytical approach to truly understand the root cause of a business challenge or the true nature of an opportunity confronting a firm.
Diagnose
The initial success of the product or service attracted competitors, yet growth starts to taper off as demand reaches saturation levels. Firms focus on differentiation or cost leadership relative to competitors rather than push the category as a whole; rivalry intensifies with a number of losing firms backing out. What phase is this in an products S-curve?
Shakeout
When a new innovation has far superior performance relative to existing innovations it represents a condition for “disruptive innovation” (True or False)
False
What major environmental factors might influence the demand for electric vehicles in the next decade
(Political), increasing public awareness of climate change (Socio-Cultural), advancements in battery technology making electric vehicles more viable (Technological), and concerns about air pollution and carbon emissions (Environmental)
Your best friend wants to start a new burger chain called four guys. The industry that has relatively low capital requirements, low switching costs for buyers, and easy access to distribution channels. Based on this information, which of the five forces would you consider and would recommend that he starts his business (Yes or No)
Threat of New Entrants (High) – Do not recommend, since the industry has low capital requirements and easy access to distribution channels, it is easy for new players to enter the market. This means high competition, making it harder for a new burger chain to establish itself.
This part of the 3ds comes from having clarity, such as using simple terms that people understand. It is important to communicate plans by avoiding complex jargon and technical language. What stage of the 3ds does this represent
Deliver
Once you have diagnosed a problem or opportunity, you move toward making a decision. What are the four steps of decision making in strategy?
Generating solutions
Screen
Hypothesis test (validate)
Confirm choice
This level of strategic decision-making is concerned with identifying and dealing with a diverse range of strategic challenges and opportunities confronting a business. It involves tackling challenges or opportunities that may have an impact on business performance. (Hint it usually flows from the bottom-up)
Managerial-Level Decision Making