What is Industry Analysis? Industry analysis is a market assessment tool used by businesses and analysts to understand the competitive dynamics of an industry. It helps them get a sense of what is happening in an industry, e.g., demand-supply statistics, degree of competition within the industry, state of competition of the industry with other emerging…
What is a Mission Statement? A mission statement is a precise statement that defines what a company does and what purpose it serves. It is generally a short, 1-2 sentence statement that may incorporate the company’s corporate strategy and long-term vision. Examples of a Mission Statement Microsoft’s Mission Statement Microsoft is an American multinational company…
What is the First Mover Advantage? The first-mover advantage refers to an advantage gained by a company that first introduces a product or service to the market. The first-mover advantage enables a company to establish strong brand recognition and product/service loyalty before other entrants to the market. It is important to note that the first-mover…
What is External Analysis? External analysis means examining the industry environment of a company, including factors such as competitive structure, competitive position, dynamics, and history. On a macro scale, external analysis includes macroeconomic, global, political, social, demographic, and technological analysis. The primary purpose of external analysis is to determine the opportunities and threats in an…
What is a Horizontal Acquisition? A horizontal acquisition, also known as a horizontal merger or horizontal integration, is a strategy that involves one or more organizations taking over or merging with another that operates in the same industry and is in the same stage of production. When the integration occurs, it’s generally to enable formerly…
What is the 5C Analysis? 5C Analysis is a marketing framework to analyze the environment in which a company operates. It can provide insight into the key drivers of success and the risk exposure to various environmental factors. The 5Cs are Company, Collaborators, Customers, Competitors, and Context. Company When analyzing a company using the 5C…
What is Click and Mortar? Click and Mortar is an omnichannel eCommerce business model that integrates online and offline operations. Customers can shop over the internet on the retailer’s website, and still be able to shop at the retailer’s brick and mortar shop. The business model provides customers with the efficiency of online transactions where goods…
What is a Master-Feeder Structure? A master-feeder structure is an investment structure used by hedge funds under which multiple investors invest in onshore and offshore “feeder” funds, which, in turn, invest in a larger “master” fund. The master and feeder funds are typically managed by the same designated investment manager, and investments are made in…
What is the McKinsey 7S Model? The McKinsey 7S Model refers to a tool that analyzes a company’s “organizational design.” The goal of the model is to depict how effectiveness can be achieved in an organization through the interactions of seven key elements – Structure, Strategy, Skill, System, Shared Values, Style, and Staff. The focus…
What is Main Street vs Wall Street? “Main Street vs Wall Street” is used to describe the contrast of general consumers, investors, or small local businesses with large investment corporations. Main Street represents the small and local ones, including small businesses, general individual investors, and small independent investment firms. Wall Street, as a symbol of…
