Description
Framework for Industry competition analysis
Framework for Industry and Competition Analysis 1. Dominant Economic characteristics of the Industry (see attachment I) 2. Competition Analysis • Threat of potential entry, assessment of entry barriers (Strong, moderate or weak force)
• • • Competition from substitutes (Strong, moderate or weak force and why) Power of suppliers (Strong, moderate or weak force and why) Power of customers ( Strong, moderate or weak force and why)
3. Driving Forces, what is causing industry, competitive environment to change
e.g. Internet, globalization, innovations, technology, e- commerce, entry or exit of a major firm, govt. policy, lifestyle changes…..
4. Competitive position of major companies or strategic groups
Understanding helps better early moves
5. Competitor Analysis. (See Attachment II) • Strategic Approaches and moves of key competitors • Whom to watch and why 6. Industry Key Success Factors • Factors that make the industry attractive • Factors that make the industry unattractive • Special industry issues problems • Profile outlook (favorable/ unfavorable)
Keep in mind the following while doing industry and competitive analysis. The task of analyzing a company’s external situation cannot be reduced to a mechanical exercise in which facts and data are put in and definitive conclusions pour out. Strategic analysis always leaves room for differences of opinion about all factors add up and what future industry and competitive situation will be.
doc_189530741.doc
Framework for Industry competition analysis
Framework for Industry and Competition Analysis 1. Dominant Economic characteristics of the Industry (see attachment I) 2. Competition Analysis • Threat of potential entry, assessment of entry barriers (Strong, moderate or weak force)
• • • Competition from substitutes (Strong, moderate or weak force and why) Power of suppliers (Strong, moderate or weak force and why) Power of customers ( Strong, moderate or weak force and why)
3. Driving Forces, what is causing industry, competitive environment to change
e.g. Internet, globalization, innovations, technology, e- commerce, entry or exit of a major firm, govt. policy, lifestyle changes…..
4. Competitive position of major companies or strategic groups
Understanding helps better early moves
5. Competitor Analysis. (See Attachment II) • Strategic Approaches and moves of key competitors • Whom to watch and why 6. Industry Key Success Factors • Factors that make the industry attractive • Factors that make the industry unattractive • Special industry issues problems • Profile outlook (favorable/ unfavorable)
Keep in mind the following while doing industry and competitive analysis. The task of analyzing a company’s external situation cannot be reduced to a mechanical exercise in which facts and data are put in and definitive conclusions pour out. Strategic analysis always leaves room for differences of opinion about all factors add up and what future industry and competitive situation will be.
doc_189530741.doc