; Industry and Competitive Forces Analysis
Documents
Resources
Learning Center
Upload
Plans & pricing Sign in
Sign Out
Your Federal Quarterly Tax Payments are due April 15th Get Help Now >>

Industry and Competitive Forces Analysis

VIEWS: 830 PAGES: 4

This document states that there are five forces that determine industry attractiveness and long-run industry profitability. The configuration of the five forces differs by industry. The strongest competitive force or forces determine the profitability of an industry and become the most important to strategy formulation. This document contains standard language used in the particular industry mentioned; however, additional language may be added by the user, making it fully customizable. Use this document to study competitive strategies that are helpful to businesses.

More Info
  • pg 1
									This document states that there are five forces that determine industry attractiveness
and long-run industry profitability. The configuration of the five forces differs by industry.
The strongest competitive force or forces determine the profitability of an industry and
become the most important to strategy formulation. This document contains standard
language used in the particular industry mentioned; however, additional language may
be added by the user, making it fully customizable. Use this document to study
competitive strategies that are helpful to businesses.
                           Industry and Competitive Forces Analysis

 Industry or Competitive Force                                            Threat   Opportunity


 Current Rivalry

 Numerous competitors                                                       X
 Few competitors                                                                       X
 Equally balanced competitors                                               X
 One or a few strong competitors                                                       X
 Industry sales growth slowing                                              X
 Industry sales growth strong                                                          X
 High fixed or inventory storage costs                                      X
 Low fixed or inventory storage costs                                                  X
 No differentiation or no switching costs                                   X
 Significant differentiation or significant or switching costs                         X
 Large capacity increments required                                         X
 Minimal capacity increments required                                                  X
 Diverse competitors                                                        X
 Similar competitors                                                                   X
 High strategic stakes                                                      X
 Low strategic stakes                                                                  X
 High exit barriers                                                         X
 Minimal exit barriers                                                                 X


 Potential Entrants

 Significant economies of scale                                                        X
 No or low economies of scale                                               X
 Cost disadvantages from other aspects                                                 X
 No other potential cost disadvantages                                      X
 Strong product differentiation                                                        X
 Weak product differentiation                                               X
 Huge capital requirements                                                             X
 Minimal capital requirements                                               X
 Significant switching costs                                                           X
 Minimal switching costs                                                    X
 Controlled access to distribution channels                                            X
 Open access to distribution channels                                       X
 Government policy protection                                                          X
 No government policy protection                                            X


 Bargaining Power of Buyers

 Buyer purchases large volumes                                              X
 Buyer purchases small volumes                                                         X
 Products purchased are significant part of buyer’s cost                    X
 Products purchased aren’t significant part of buyer’s cost                            X
 Products purchased are standard or undifferentiated                        X


© Copyright 2011 Docstoc Inc. registered document proprietary, copy not                2
 Products purchased are highly differentiated and unique                      X
 Buyer faces few switching costs                                          X
 Buyer faces significant switching costs                                      X
 Buyer’s profits are low                                                  X
 Buyer’s profits are strong                                                   X
 Buyer has ability to manufacture products being purchased                X
 Buyer doesn’t have ability to manufacture products                           X
 Industry’s products aren’t important to quality of buyer’s products      X
 Industry’s products are important to quality of buyer’s products             X
 Buyers have full information                                             X
 Buyers have limited information                                              X


 Bargaining Power of Suppliers

 Supplying industry has few companies and is more concentrated            X
 Supplying industry has many companies and is fragmented                      X
 There are no substitute products for supplier’s products                 X
 There are substitute products for supplier’s products                        X
 Industry being supplied is not an important customer                     X
 Industry being supplied is an important customer                             X
 Supplier’s product is an important input to industry                     X
 Supplier’s product is not an important input to industry                     X
 Supplier’s products are differentiated                                   X
 Supplier’s products aren’t differentiated                                    X
 There are significant switching costs in supplier’s products             X
 There are minimal switching costs in supplier’s products                     X
 Supplier has ability to do what buying industry does                     X
 Supplier doesn’t have ability to do what buying industry does                X


 Substitute Products

 There are few good substitutes                                           X
 There are several not-so-good substitutes                                X
 There are no good substitutes                                                X




© Copyright 2011 Docstoc Inc. registered document proprietary, copy not       3

								
To top