Title

Business Landscaping for Strategic Advantage: Evidence from a Multi-Sector Study

Publication Type

Journal Article

Publication Date

12-2014

Abstract

This paper sets out to make a significant contribution to research both by introducing a quantitative approach to landscaping the intensity of industry competition, and then demonstrating its applicability using cross-industry data. The underlying framework is Porter's Five Forces Model, which has wide acceptance in landscaping competitive intensity because of its simplicity, adaptability and flexibility, but is frequently hard to operationalise because it does not specify procedures for quantifying competitive factors. This paper presents a multivariate approach (i.e., the ICM framework) that enables the operationalisation of Porter's model in a quantitative manner, both at a firm and industry level. This framework is then applied to a total of 19 Australian industries. The results indicate that the degree of competition varies widely among Australian industries, characterized by high intensity of rivalry, low bargaining power of buyers, minimal bargaining power of suppliers, high threat of new entrants and wide-ranging threat of substitutes.

Keywords

Australian Industry Competitiveness, Business Landscaping, Cross Industry study, Porter's 5-Forces Model

Discipline

Accounting | Strategic Management Policy

Research Areas

Accounting Information System; Financial Performance Analysis

Publication

Journal of Applied Management Accounting Research

Volume

12

Issue

2

First Page

1

Last Page

15

ISSN

1443-9905

Publisher

Institute of Certified Management Accountants (Australia)

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