THE SLIDES ARE ALL ABOUT STRATEGIC MANAGEMENT

2. INDUSTRY AND COMPETITIVE
ANALYSIS
Q1:WHAT ARE THE INDUSTRY’S DOMINANT ECONOMIC
FEATURES?
Q2: WHAT IS COPETITION LIKE AND HOW STRONG ARE
COMPETIVE FORCESS?
Q3: WHAT IS CAUSING THE INDUSTRY’S COMPETITIVE
STRUCTURE AND BUSINESS ENVIROMENT TO
CHANGE?

3. Q4: Which companies are in the strongest or weakest
position?
Q5: what strategic moves are rivals likely to make next ?
Q6: what is the key factor for competitive success ?
Q7: Is the company attractive and what are its prospects
for above average profitability?
INDUSTRY AND COMPETITIVE
ANALYSIS

4. WHAT ARE THE INDUSTRY’S
DOMINANT ECONOMIC FEATURES ?
 Market size
 Scope of competitive rivalry
 Market growth rate
 Number of rivals and their relative share
 To what extent, industry rivals have
integrated backward and forward

5. cont’d
 The type of distribution channels
 Key industry participants cluster
 Capital requirement and ease of entry and
exit
 Industry’s profitability

6. SCOPE OF COMPETITIVE RIVALRY
We are talking about degree of
competition.
• Local
• Regional
• National
• International
• Global

7. MARKET SIZE
The number of individuals in a certain market who are
potential buyers and/or sellers of a product or
service.
Companies are interested in knowing the market size
before launching a new product or service in an
area.

8. MARKET GROWTH RATE
• How many new buyers add up in
the market.
• Sometimes for some product the
market growth rate is high or
slow.

9. NUMBER OF RIVALS AND THEIR RELATIVE
SHARE
How many competitors are involve
the market and what are their
marketing shares, which means how
much shares of the market has been
captured by the competitors.

10. TO WHAT EXTENT, INDUSTRY RIVALS HAVE
INTEGRATED BACKWARD AND FORWARD
SUPPLIE
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MANUFA
CTURER
WHOLSE
LLER
RATAILE
R
SUPPLIE
R
MANUFA
CTURER
CUSTOM
ER
RATAILA
R
WHOLSE
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FORWARD
INTERGRATION
BACKWARD
INTERGRATION
CUSTOM
ER

11. THE TYPES OF DISTRIBUTION CHANNELS
A channel of distribution or trade channel is the path or route along
which goods move from producers to ultimate consumers.
a. Goods flow from producer to consumers;
b. Cash flow from consumers to producer as payment for goods; and
c. Marketing information flows in both directions, from producers to
consumers in the form of information on new products, new uses of
existing products, etc. The flow of information from consumers to
producers is the feedback of the wants, suggestions, complaints, etc.

12. THE TYPES OF DISTRIBUTION CHANNELS
Producer- Consumer:
This is also known as direct selling because no
middlemen are involved. Example BATA
Producer –Retailer- Consumer:
This is one stage distribution channel
having one middleman,
Producer- Wholesaler –Retailer- Consumer
This is the traditional channel of distribution. There are two middlemen
in this channel of distribution, namely, wholesaler and retailer. This
channel is most suitable for the products with widely scattered
market.

13. KEY INDUSTRY PARTICIPANTS CLUSTERS
A business cluster is a geographic concentration of
interconnected businesses, suppliers, and associated
institutions in a particular field. Clusters are considered
to increase the productivity with which companies can
compete, nationally and globally.
A group of similar things or people positioned or occurring
closely together.

14. CAPITAL REQUIREMENT AND EASE TO
ENTRY AND EXIT
Needs of the capital for staring a
new business or while entering in
new market.

15. INDUSTRY’S PROFITABILITY
Before entering in industry we checking out the
profitability of that industry weather its profitability is
high or low if its low, so we wont enter in it, if it is
high, so will trying to enter in it or invested.

16. WHAT IS COPETITION LIKE AND HOW
STRONG ARE COMPETIVE FORCESS?
(PORTERS’ FIVE FORCE MODEL)
 Buyer power
 Seller power
 Substitute product
 Potential entry of new competitors
 Rivalry among seller

17. BUYER POWER
When there are competitors in the market
in huge number, so buyer power is high.
If there is less competitors in the
market, so the buyer power is less

18. SELLER POWER
When there is too much seller in the
market, so the seller barging power is
low and if there is less seller ,so the
selling barging is high

19. SUBSTITUTE PRODUCT
The product which are selling by industry.
When we cant afford the product, so will
trying to use the substitution product

20. POTENTIAL ENTRY OR NEW COMPETITORS
Check it out if there is too many seller in
the industry, so check it out what is the
capital requirement if it is high, so that
will be restriction for new seller to
enter the industry.

21. RIVALRY AMONG SELLERS
Its connected with above four points if they
are high, so the result will automatically
show here.
If the above four goes to the favor of buyer,
so the buyer power increases.
If the above four goes to the favor of seller,
so the it will be so many restriction for the
new competitors for entering in market.

22. WHAT IS CAUSING THE INDUSTRY’S
COMPETITIVE STRUCTURE AND BUSINESS
ENVIROMENT TO CHANGE?
 The internet
 Increasing globalization of industry
 Changes in the long term growth rate
 Product innovation
 Technological change
 Marketing innovation
 Regulatory influence

23. THE INTERNET
 its one of the dominant
factor which bring so
many changes in the
business the present
time.

24. INCREASING GLOBALIZATION OF
INDUSTRY
Globalization of competition really starts to take
hold when one or more ambitious companies
launch a race for worldwide market leadership.
The forces of globalization are sometimes such
a strong driver that companies find it highly
advantageous, if not necessary, to spread their
operating reach into more and more country
markets.

25. CHANGES IN THE LONG TERM GROWTH
RATE
Shifts in industry growth
are a driving force for industry change, affecting the
balance between industry supply and buyer demand,
entry and exit, and the character and strength of
competition. An upsurge in buyer demand triggers a
race among established firms and newcomers to
capture the new sales opportunities.
A slowdown in the growth of demand nearly always
brings an increase in rivalry and increased efforts by
some firms to maintain their high rates of growth by
taking sales and market share away from rivals.

26. PRODUCT INNOVATION
In some industries innovation is a very
crucial factor if you wont bring any
innovation , so you will face the losses.
For bring innovation the company must
invest some amount of money in R&D.

27. TECHNOLOGICAL CHANGE
Bring some new technological changes in
the industry
Example:
Reboot is replacing human beings

28. MARKETING INNOVATION
When firms are successful in introducing new
ways
to market their products, they can spark a
burst of buyer interest, widen industry
demand, increase product differentiation, and
lower unit costs—any or all of which can
alter the competitive positions of rival firms
andforce strategy revisions.

29. REGULATORY INFLUENCE
Government regulatory actions can often
force significant changes in industry
practices and strategic approaches.
Deregulation has proved to be a potent
pro-competitive force in the airline,
banking, natural gas, telecommunications,
and electric utility industries.

30. INDUSTRY AND COMPETITIVE
ANALYSIS
Q4: Which companies are in the strongest or
weakest position?
Q5: what strategic moves are rivals likely to
make next ?
Q6: what is the key factor for competitive
success ?
Q7: Is the company attractive and what are its
prospects for above average profitability?

31. Q4: WHICH COMPANIES ARE IN THE
STRONGEST OR WEAKEST POSITION?
Here we look at whole industry and make list of all
competitors.
Now we start comparing them with our company for
finding out the differences and also finding out where
we are standing at the market place
We look at different market factors for comparison
Example:
Market share
Market size
Market growth rate
Profitability

32. Q5: WHAT STRATEGIC MOVES ARE RIVALS
LIKELY TO MAKE NEXT ?
Here we put our eyes on
competitors strategy that what
they are going to do next or what
are their the future planning.
We make a team of dogwatch their
duties is to look at competitors
planning.

33. Q6: WHAT IS THE KEY FACTOR FOR
COMPETITIVE SUCCESS ?
For every company its own success factor
If we acquire that factor, so we will go a head if
we wont we will remain backward.
FACTOR OF SUCCESS
Technology
Manufacturing
Distribution
Marketing
Skills
Organization capability

34. Q7: IS THE COMPANY ATTRACTIVE AND
WHAT ARE ITS PROSPECTS FOR ABOVE
AVERAGE PROFITABILITY?
If an industry’s overall profit prospect are above
average, so the industry can be considered
attractive;
If its profit prospects are below average it is
unattractive.

35. THANK YOU FOR
YOUR ATTENTION