Strategy analysis - Industry analysis

4 important questions on Strategy analysis - Industry analysis

Describe industry competition

The price degree to which there is competition among suppliers of the same or similar products

There are three potential sources of competition in an industry (competitive forces)

Rivalry between existing firms
threat of entry of new firms
threat of subsitute products or services

Descibe the factors the determine the intensity of competition between existing players in an industry

Industry growth rate
concentration and balance of the competitors
excess capacity and exit barriers
degree of differentation and switching costs
scale/learning economics and the ratio fixed to variable costs
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Describe the factors that determine the height of of the barriers to entry in an industry

Scale
first mover advantage
acces to channels of distribution and relationships
legal barriers

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