Strategy analysis - Industry analysis
4 important questions on Strategy analysis - Industry analysis
Describe industry competition
There are three potential sources of competition in an industry (competitive forces)
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
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
first mover advantage
acces to channels of distribution and relationships
legal barriers
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