competitive environment
- Created by: Millie
- Created on: 23-05-14 10:45
View mindmap
- Business and competitive environment
- PORTERS 5 FORCES
- Rivalry among competitors
- Refers to the number of firms within an industry
- Are there lots of small firms selling a very small proportion of total market sales
- or is the market dominated by a few large firms, each selling a significant proportion of total market sales
- Lots of firms - very competitive market and if basically selling the same product, customers can switch easily
- Competition also depend on price and product differentiation - firms want to appear unique and/or better value
- Are there lots of small firms selling a very small proportion of total market sales
- Refers to the number of firms within an industry
- Threat of new entrants
- in some industries, there are barriers of entry, prevent new firms from joining the market. These inclue:
- - high capital costs, patents, loyalty of customers and brand loyalty, need to achieve economies of scale quickly
- internet can encourage new entrants as it is easy to sell products
- in response to new entrants firms can: Integration (mergers and takeovers) Diversify, cut costs, improve branding
- in some industries, there are barriers of entry, prevent new firms from joining the market. These inclue:
- threat of substitute products
- Bargaining power of customers
- related to their ability to influence price
- are there lots of customers who have little power or are there only a few customers who have lots of power.
- related to their ability to influence price
- Power of suppliers
- Untitled
- Rivalry among competitors
- PORTERS 5 FORCES
Comments
No comments have yet been made