The document outlines the concepts related to competition within a business environment, discussing types of competitors, elements of competitive environments, and various competitive strategies. It highlights Michael Porter's Five Forces framework for analyzing industry competition, which includes industry rivalry, bargaining power of suppliers and buyers, and threats from substitutes and new entrants. The document also addresses challenges businesses face in maintaining competitiveness and strategies to achieve competitive advantage.

1. COMPETITIVE
AUSAD, GLENDA
TANG, MERLYN
BUSINESS
ENVIRONMENT
BA 205 BUSINESS ENVIRONMENT I AUSAD, GLENDA & TANG, MERLYN

2. BA 205 BUSINESS ENVIRONMENT I AUSAD, GLENDA & TANG, MERLYN
TOPICS TO BE COVERED:
• Defining Competition
• Who are the Competitors
• Types of Competitors
• Meaning of Competitive Environment
• Elements of Competitive Environment
• Competitive Strategies
• Challenges to Competitive of Business
• MICHAEL PORTER’S FIVE FORCES: COMPETITIVE
BUSINESS
ENVIRONMENT

3. COMPETITION
COMPETITIVE
BUSINESS
ENVIRONMENT
BA 205 BUSINESS ENVIRONMENT I AUSAD, GLENDA & TANG, MERLYN
In economics “Competition” is the
rivalry among sellers trying to achieve
such goals as increasing profits.
 By varying the elements of the
Marketing Mix: PRICE, PRODUCT,
DISTRIBUTION, AND PROMOTION

4. COMPETITORS
 Any person or entity which is a rival
against another.
 In business, A company in the same
industry or a similar industry which
offers a similar product or services.
COMPETITIVE
BUSINESS
ENVIRONMENT
BA 205 BUSINESS ENVIRONMENT I AUSAD, GLENDA & TANG, MERLYN

5. TYPES OF COMPETITORS
• Direct Competitors
• Indirect Competitors
COMPETITIVE
BUSINESS
ENVIRONMENT
BA 205 BUSINESS ENVIRONMENT I AUSAD, GLENDA & TANG, MERLYN

6. COMPETITIVE ENVIRONMENT
• Is the dynamic external system in
which a business competes and
function.
COMPETITIVE
BUSINESS
ENVIRONMENT
BA 205 BUSINESS ENVIRONMENT I AUSAD, GLENDA & TANG, MERLYN

7. ELEMENTS OF
COMPETITIVE ENVIRONMENT
• Regulatory Elements
• Direct Competitors
• Indirect Competitors
• Differentiation
• Technology
COMPETITIVE
BUSINESS
ENVIRONMENT
BA 205 BUSINESS ENVIRONMENT I AUSAD, GLENDA & TANG, MERLYN

8. COMPETITIVE STRATEGIES
COMPETITIVE
BUSINESS
ENVIRONMENT
BA 205 BUSINESS ENVIRONMENT I AUSAD, GLENDA & TANG, MERLYN
LOWER COST DIFFERENTIATION
Broad
Target
1. Cost Leadership 2. Differentiation
Narrow
Target
3a. Cost Focus 3b. Differentiation
Focus
COMPETITIVE ADVANTAGE
COMPETITIVE
SCOPE

9. CHALLENGES TO COMPETITIVE OF
BUSINESS
• Operations
• Logistical Cost
• Creating global marks
• Leadership
• Customer Acceptance
• Market Understanding and Branding
• Less Experience of International Markets, Customers
and Suppliers
COMPETITIVE
BUSINESS
ENVIRONMENT
BA 205 BUSINESS ENVIRONMENT I AUSAD, GLENDA & TANG, MERLYN

10. MICHAEL PORTER’S FIVE FORCES:
• It is a framework for analysing the level of competition
within an industry and business strategy development
• It draws upon industrial organization economics to
derive five forces that determine the competitive
intensity
• Porter refers these forces as the Micro environment, to
contrast it with more general term Macro environment
COMPETITIVE
BUSINESS
ENVIRONMENT
BA 205 BUSINESS ENVIRONMENT I AUSAD, GLENDA & TANG, MERLYN

11. INDUSTRY
RIVALRY
Bargaining Power of Suppliers
Threat of
Substitutes
Bargaining Power of Buyers
Threat of
New Entrants
MICHAEL PORTER’S FIVE FORCES:
THREAT OF NEW ENTRANT
Potential factors:
 Government Policy
 Capital requirements
 Absolute cost
 Economics of scale
 Brand Equity
 Network effect
BA 205 BUSINESS ENVIRONMENT I AUSAD, GLENDA & TANG, MERLYN
COMPETITIVE
BUSINESS
ENVIRONMENT

12. INDUSTRY
RIVALRY
Bargaining Power of Suppliers
Threat of
Substitutes
Bargaining Power of Buyers
Threat of
New Entrants
MICHAEL PORTER’S FIVE FORCES:
THREAT OF SUBSTITUTES
Potential factors:
 Quality depreciation
 Buyer switching cost
 Substandard product
 Availability of close
substitute
BA 205 BUSINESS ENVIRONMENT I AUSAD, GLENDA & TANG, MERLYN
COMPETITIVE
BUSINESS
ENVIRONMENT

13. INDUSTRY
RIVALRY
Bargaining Power of Suppliers
Threat of
Substitutes
Bargaining Power of Buyers
Threat of
New Entrants
MICHAEL PORTER’S FIVE FORCES:
BARGAINING POWER OF BUYER OR
CUSTOMER
Potential factors:
 Buyer concentration to firm
concentration ratio
 Buyer information availability
 Force down prices
 Availability of existing
substitute products
 Buyer price sensitivity
BA 205 BUSINESS ENVIRONMENT I AUSAD, GLENDA & TANG, MERLYN
COMPETITIVE
BUSINESS
ENVIRONMENT

14. INDUSTRY
RIVALRY
Bargaining Power of Suppliers
Threat of
Substitutes
Bargaining Power of Buyers
Threat of
New Entrants
MICHAEL PORTER’S FIVE FORCES:
BARGAINING POWER OF SUPPLIERS
Potential factors:
 Suppliers switching cost
relative to firm switching
cost
 Presence of substitute
inputs
 Strength of distribution
channel
 Employees solidarity
BA 205 BUSINESS ENVIRONMENT I AUSAD, GLENDA & TANG, MERLYN
COMPETITIVE
BUSINESS
ENVIRONMENT

15. INDUSTRY
RIVALRY
Bargaining Power of Suppliers
Threat of
Substitutes
Bargaining Power of Buyers
Threat of
New Entrants
MICHAEL PORTER’S FIVE FORCES:
INDUSTRY RIVALRY
Potential factors:
 Degree of transparency
 Level of advertising
expenses
 Powerful competitive
strategy
 Firm concentration ratio
BA 205 BUSINESS ENVIRONMENT I AUSAD, GLENDA & TANG, MERLYN
COMPETITIVE
BUSINESS
ENVIRONMENT

16. END
BA 205 BUSINESS ENVIRONMENT I AUSAD, GLENDA & TANG, MERLYN