Types of distribution channels rivals use to access
customers. (Do the channel types vary by
customer segment?)
Pace of technological innovation in production process
innovation
Pace of technological innovation in product introduction
Extent to which the rivals differentiate their products
and/or services
Extent to which rivals use economies of scale in:
• Purchasing
• Manufacturing
• Services
• Transportation
(logistics)
• Marketing
• Advertising
• General
and Administration
• Other
steps in the value chain (Refer to chapter 4 for the description of the value
chain.)
Extent to which the key industry participants are clustered
in one geographic location
Extent to which certain industry activities result from
learning and experience curve effects
Capacity surplus or shortage in the industry
(Capacity refers to the total manufacturing output
capability for the industry. Capacity
surplus would indicate that the industry has the capability to produce more
products than the market demands.)
Capital requirements and the ease of entry into or exit from
the industry
Industry profitability
(The annual net profit margin for the industry.)
Degree of alliances
(You can provide additional economic features applicable to
the industry you are analyzing.)
3. What is competition like and how strong are each of the
competitive forces?
Criteria Facts What does this mean?
(Does this make the force strong or weak for the industry?)
RIVALRY
How many competitors are there in this industry?
What is the relative size (market share based on their
percentage of industry sales) of each competitor?
What is the industry concentration ratio (C4)?
? Top 4 company’s sales
Industry sales
What is the product or service demand growth rate? (Use the industry’s total sales over multiple
years to determine the industry growth rate.
Use the rival’s sales over multiple years to determine individual growth
rate.)
Are rivals using price cuts or other competitive weapons to
boost unit volume?
Are the customer’s switching costs low?
Are rivals launching moves to change their market share or
industry position at the expense of other industry participants?
