Industry and Competitor Analysis Form

C.RivalryAmongExistingFirms

III. TheFiveCompetitiveForcesThat

DetermineIndustryProfitability

Factorsthatdeterminethenatureandintensityoftherivalryamongexisting

firmsinanindustry

Growthrateofan

industry

Thecompetitionamongfirmsinaslow‐growthindustryis

strongerthanamongthoseinfast‐growthindustries.Slow‐

growthindustryfirmsmustfightformarketshare,which

maytemptthemtolowerpricestogainmarketshare.In

fast‐growthindustries,thereareenoughcustomers

togo

around,makingprice‐cuttinglesslikely.

Firmsthathavehighfixedcostsmustsellahighervolume

f th i dtt h th bk

itth fi

Universityof Zurich

ISU– InstituteforStrategyandBusinessEconomics

UlrichKaiser

AprimerinEntrepreneurship

Springsemester2008

Leveloffixedcosts



rpro



oreac



e

rea

‐evenpo



an

rms

withlowfixedcosts.Asaresult,firmswithhighfixedcosts

areanxioustofilltheircapacity,andthisanxietymaylead

toprice‐cutting.

 Insomecases,supplierscansuppresstheprofitabilityoftheindustries

to which they sell by raising prices or reducing the quality of the

D.BargainingPowerofSuppliers

III. TheFiveCompetitiveForcesThat

DetermineIndustryProfitability



which



they



sell



raising



prices



reducing



the



quality



the



componentstheyprovide.

 Ifasupplierreducesthequalityofthecomponentsitsupplies,the

qualityofthefinishedproductwillsuffer,andthemanufacturerwill

eventuallyhavetoloweritsprice.

 Ifthesuppliersarepowerfulrelativetothefirmsintheindustrytowhich

theysell,industryprofitability

cansuffer.

Universityof Zurich

ISU– InstituteforStrategyandBusinessEconomics

UlrichKaiser

AprimerinEntrepreneurship

Springsemester2008

Page 10/17

Free Download

Industry and Competitor Analysis Form PDF

Favor this template? Just fancy it by voting!

(0 Votes)

0.0

Related Forms

Competitive Analysis Sample

14 Page(s) | 2867 Views | 11 Downloads

SWOT Analysis Template with Summary

1 Page(s) | 850 Views | 17 Downloads

Retail Market Analysis Sample

11 Page(s) | 3616 Views | 26 Downloads

Draft Market Analysis Report

59 Page(s) | 6801 Views | 30 Downloads

Job Families and Market Analysis

21 Page(s) | 4730 Views | 21 Downloads