Maam Gelen Reort

INDUSTRY AND
COMPETITOR ANALYSIS
REPORTERS:
MR. RONNIE IGLOSO
MS. HAZEL JOY FERNAN
INDUSTRY AND COMPETITOR
ANALYSIS
 Is a specialized form of competitor analysis that

focus on understanding the competitive
landscape within a specific industry. This
analysis provides businesses with insights into
the key players, their strategies, and overall
competitive dynamics shaping the industry.
Competitive Strategies:
Investigate the strategies employed by competitors to
gain a competitive edge. This includes their marketing
approaches, distribution channels, and positioning in the
market.
Financial Performance:
Assess the financial health of each competitor. Look at
factors such as revenue growth, profitability, and debt
levels.
Market Trends: Stay updated on industry trends and
emerging developments. This includes technological
advancements, changing consumer preferences, and
shifts in market demand.
SWOT Analysis: This helps identify their internal

strengths and weaknesses and assess external
opportunities and threats in the industry.
INDUSTRY ANALYSIS
Industry analysis is a critical component of business
strategy and market research. It involves the evaluation
of a specific industry's dynamics, trends, and
competitive landscape to make informed decisions.
Key aspects of industry analysis include:
1. Market Size and Growth: Understanding the current

size of the industry and its projected growth rate helps
businesses assess its potential.
2. Market Trends: Identifying trends, such as emerging

technologies or changing consumer preferences, can
guide strategic planning.
Customer Segmentation: Understanding the various
customer segments within the industry allows for
targeted marketing and product development.
Barriers to Entry: Identifying obstacles that prevent

new entrants can reveal the industry's competitive
intensity.
Lifecycle Stage: Determining whether the industry is in

the growth, maturity, or decline phase informs strategic
decisions.
THE FIVE FORCES OF
MODELS
The Five Forces Model, developed by Michael Porter, is
a framework for analyzing the competitive dynamics of
an industry. It helps businesses assess the attractiveness
and profitability of an industry.
1. Threat of New Entrants: This force assesses how
easy or difficult it is for new competitors to enter the
industry. High barriers to entry, such as high capital
requirements or strong brand loyalty, can deter new
entrants and limit competition.
2. Bargaining Power of Suppliers: It considers how

much leverage suppliers have in terms of pricing,
quality, or availability of inputs. If suppliers have
strong bargaining power, they can exert pressure on
industry firms and potentially reduce profitability.
3. Bargaining Power of Buyers: This force
examines the power of customers to negotiate better
prices, demand higher quality, or switch to
alternatives. When buyers have significant power, it
can impact pricing and profit margins.
4. Threat of Substitute Products or Services: This

force evaluates the likelihood of customers switching
to alternative products or services that can satisfy
their needs. The higher the threat of substitutes, the
more pressure on pricing and profitability .
5. Rivalry Among Existing Competitors: This force
assesses the intensity of competition among existing firms
in the industry. Factors such as the number of
competitors, their diversity, and the rate of industry
growth influence rivalry. Intense competition can lead to
price wars and reduced profitability.
THREATS OF SUBSTITUTE
The "Threat of Substitute Products or Services" is another
key element in Michael Porter's Five Forces Model for
analyzing the competitive dynamics of an industry. This
force assesses the risk posed by alternative products or
services that could potentially satisfy the same customer
needs as those offered by existing firms in the industry.
Here's a closer look at the threat of substitutes:
Key aspects of threats of substitutes:
Price-Performance Trade-Off: Consumers often weigh

the value they receive from a product or service against
its price. If substitutes offer comparable or better value
for a lower price, they become more attractive.
Quality and Differentiation: Substitutes might

differentiate themselves through unique features, quality,
or other attributes. If a substitute can offer superior
quality or features, it becomes a more significant threat.
Consumer Switching Costs: The ease with which
consumers can switch from one product or service to a
substitute is a factor.
Brand Loyalty: Strong brand loyalty can mitigate the

threat of substitutes. Consumers may be less likely to
switch to alternatives if they have a strong emotional or
brand-based connection to a particular product or
service.
Industry Trends:
Emerging technologies or shifts in consumer preferences
can introduce new substitutes or change the competitive
landscape. Monitoring industry trends is crucial for
assessing this threat over time.
THREATS OF NEW ENTRANTS
The threat of new entrants is one of Porter's Five Forces, a
framework used to analyze competitive forces in an industry.
It refers to the potential for new companies to enter a market
and compete with existing businesses. This threat can be
influenced by factors like barriers to entry, economies of
scale, and brand loyalty. High barriers, such as significant
capital requirements or established brand loyalty, can deter
new entrants, while low barriers may make it easier for new
businesses to compete..
RIVALRY AMONG OTHER
EXISTING FIRMS
Rivalry Among Existing Competitors" is a fundamental

element of Michael Porter's Five Forces Model for
analyzing the competitive dynamics within an industry.
This force assesses the intensity of competition among
firms that are already operating in the same industry.
Here's a deeper look at rivalry among existing
competitors:
Number of Competitors: The more competitors there
are in an industry, the higher the rivalry tends to be. A
crowded marketplace often leads to fierce competition.
Market Concentration: If a few dominant players
control a large portion of the market share, competition
might be less intense among them. However, if the
market is fragmented with many small competitors,
rivalry can be strong.
Price Competition: Price wars, where firms constantly
undercut each other's prices, are a sign of intense rivalry.
This can erode profit margins and lead to unsustainable
business practices.
Product Differentiation: Companies that offer unique

or differentiated products or services often face less
rivalry. Strong brand recognition and customer loyalty
can reduce the focus on price competition.
Strategic Goals: Companies with aggressive growth
strategies, a desire to expand market share, or a
willingness to take risks tend to contribute to higher
rivalry.
COMPETITOR ANALYSIS
Competitor analysis is a critical component of strategic

planning and market research for businesses. It involves
the systematic examination and evaluation of the
strengths, weaknesses, strategies, and performance of
current and potential competitors in the same industry.
Here are some key aspects of competitor analysis:
Identifying Competitors: The first step is to identify
who your direct and indirect competitors are in the
marketplace. This includes both well-established
companies and newer entrants.
Gathering Information: Collect data on your

competitors' products or services, pricing strategies,
market share, distribution channels, marketing tactics,
and financial performance.
SWOT Analysis: Conduct a SWOT analysis (Strengths,
Weaknesses, Opportunities, Threats) for each
competitor. This helps identify their internal strengths
and weaknesses and assesses external opportunities and
threats.
Benchmarking: Compare your company' performance

and offerings to those of your competitors. This can
highlight areas where you excel or where improvements
are needed.

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INDUSTRY AND

 Is a specialized form of competitor analysis that

SWOT Analysis: This helps identify their internal

1. Market Size and Growth: Understanding the current

2. Market Trends: Identifying trends, such as emerging

Barriers to Entry: Identifying obstacles that prevent

Lifecycle Stage: Determining whether the industry is in

2. Bargaining Power of Suppliers: It considers how

4. Threat of Substitute Products or Services: This

Price-Performance Trade-Off: Consumers often weigh

Quality and Differentiation: Substitutes might

Brand Loyalty: Strong brand loyalty can mitigate the

Rivalry Among Existing Competitors" is a fundamental

Product Differentiation: Companies that offer unique

Competitor analysis is a critical component of strategic

Gathering Information: Collect data on your

Benchmarking: Compare your company' performance

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