Pritam Deuskar Wealthyvia - Micheal Porter model factors definitely help us in analyzing competitive advantage of a firm . In business analysis one must see how much strength company has got from various angles

2. Pritam Deuskar Wealthyvia - Micheal Porter model factors
definitely help us in analyzing competitive advantage of a
firm . In business analysis one must see how much strength
company has got from various angles
Here is an explanation of the 7 drivers of market
attractiveness currently used in the Porter analysis model.
According to Pritam Deuskar Wealthyvia, it is important
that the analyst adopts an external perspective when
carrying out Porter analysis. Look at the market
objectively, just as if you were a potential new entrant
evaluating it from the outside.

3. MARKET ATTRACTIVENESS DRIVERS
1. Market Growth
Market growth is a driver of market attractiveness. Pritam Deuskar
says, "Fast-growing markets are more attractive than mature or
declining markets."
For example input 5 if the market growth is everage, or 1-3 if the
market is growing at more than 20% per year.

4. 2. Competitor Rivalry
A certain amount of competitor rivalry is present in most markets.
Don’t naturally assume that the market is necessarily higher
than average. Input 9 if you believe that your competitors are adopting
an almost irrational level of rivalry activity-severe price competition,
advertising wars. If you believe rivalry to be average, input 5.

5. 3. Customer Power
 Is high when there is:
 High price elasticity (if price goes up, they buy less)
 High buyer concentration (few of them)
 High significance of purchases to buyers
 Lack of differentiation between suppliers
 Low switching costs from one suppliers to other suppliers
 Quality is relatively unimportant to buyers
 Buyers operate on low profit margins - need costs reduced
 Buyers have good information about suppliers cost structures
 Threat of backward integration – buyer enters your business

6. 4. Threat of Substitutes
 Is high when there is:
 New technology
 New materials
 New processes
5. Threat of New Entrants
 Is high when:
 There are low economies of scale
 There is little product differentiation
 There are low capital requirements
 Customer switching costs are low
 There is easy access to distribution
 Government policy encourages new entrants

7. 6. Supplier Power
Is high when:
 There is a high concentration of suppliers (few of them)
 There is a lack of substitutes/alternatives
 It is expensive to switch suppliers
 There is a threat of forward integration – supplier enters
your business
 Your industry is not that important to suppliers
7. Regulatory Pressure
Is high when there are Government or other regulatory
bodies (legitimate or otherwise) act to make the market less
attractive.

8. RELATIVE ADVANTAGE DRIVERS
Here is a description of the two drivers used to
establish a product’s relative competitive advantage
compared to competitor’s products.
8. Market Share
In a stable market shares measure the firm’s relative
competitive advantage or disadvantage. If anybody is
interested in knowing about market shares, then visit
the wealthy via site. Here you will get the right
information about market shares.

9. 9. Virtuality
Virtuality occurs when economies of scale become negative.
That is, when the external supplier markets become more
efficient than the organization itself and the company can
procure and serve customers more efficiently using external
sources. (e.g. outsourcing). Organizations tend to improve
incrementally, whilst some supplier markets are improving
exponentially. Virtual organizations tend to monitor
supplier markets and outsource to exploit savings in both
invested assets and expenses.
Want More Information about drivers of market
attractiveness, Then visit Pritam Deuskar’s wealthyvia Site.