A more comprehensive understanding of an industry can be gained through an anaÂlysis of its underlying economic and technical characteristics. A focus on a broad industry may lead to an inaccurate understanding of the market and the nature of competition; it does not tell you who your competitors are and which are the key competing products for your firm. You need to identify your precise market, which can be achieved by conducting a 'market segmentation analysis' and 'strategic group analysis'. A thorough understanding of the industry environment and its likely future should help the strategic decision-maker to develop more appropriate strategies. Â After reading this research you should be able to understand the significance of the global industry environment for the strategies of multinational firms; apply market segmentation analysis, strategic group analysis, and the Five Forces techniques; understand the importance of industry evolution and the international Product Life Cycle; appreciate differences between forecasting techniques for understanding the future of an industry.
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