Customers
• A firm’s strategy should focus on creating customer value
• The kinds of skills and behaviors need from employees to provide value to customers
Rival Firms
• “Who is the competition?”
• i.e. Toys “R” Us moved from volume-based approach to compete more on customer service and the expertise of the employees
New Entrants
• Sometimes new companies can enter an industry and compete well against established firm and change “ rules of
the game”
• Impact on labor cost, productivity, skills required, and work design are important considerations in both strategic and human resource planning
Substitutes
• The biggest opportunity or threats in an industry comes from substitution rather than direct competition
• i.e. Travel agents
Suppliers
• Provide key inputs to organizations – raw materials, money, information, and people labor supply
• Companies conduct labor market analysis and monitor labor trends in other countries in which they do or want to do their business
• Change in labor supply can limit the strategies available
Customers• A firm’s strategy should focus on creating customer value• The kinds of skills and behaviors need from employees to provide value to customers Rival Firms• “Who is the competition?”• i.e. Toys “R” Us moved from volume-based approach to compete more on customer service and the expertise of the employeesNew Entrants• Sometimes new companies can enter an industry and compete well against established firm and change “ rules ofthe game”• Impact on labor cost, productivity, skills required, and work design are important considerations in both strategic and human resource planningSubstitutes• The biggest opportunity or threats in an industry comes from substitution rather than direct competition• i.e. Travel agentsSuppliers• Provide key inputs to organizations – raw materials, money, information, and people labor supply• Companies conduct labor market analysis and monitor labor trends in other countries in which they do or want to do their business• Change in labor supply can limit the strategies available
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