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FIVE FORCES

The market and sector analysis examines the industry in which the company operates, the behavior and the impact of competitors and potential competitors as well as the supply chain, both up and downstream. The analysis of the factors is most clearly seen in the 5-Forces Model.

According to Porter, there are five factors that influence the competitiveness and profitability of a company. New competitors can weaken the competitive position of the company. Market entry barriers such as economies of scale, differentiation or subsidies can be considered threats. the rivalry between firms increases as their strategies become similar and the growth of the industry slows. The respective bargaining powers depends on their relative position in the market (leaders have an easier time negotiating and vice versa). If the supplier is the only one in the market, they can determine the price. A similar picture emerges on the selling side. The bargaining power of the customer increases when they know the production costs, substitution possibilities and the degree of concentration of the firms. The threat of substitutes also determines the competitive intensity.

Company and Competition Research

Strengths and Weaknesses

The ability to identify and properly assess strengths and weaknesses of the business, as well as the competition, is central to creating and implementing a corporate business strategy in the market. Internal analysis requires resources, skills and processes to be at the center. Processes that have direct contact to the customer should be at the forefront of service businesses. The view outwards to the competition, especially to their market strategies,products, prices, marketing channels, sales and promotion, and communication activities is imperative. While secondary data can be used, the challenge lies in the choice between available and reliable and how the evaluation and consolidation of this information is performed. For this CONOSCOPE has developed and uses special analytical and evaluation tools. They include potential analysis, benchmarking and scoring models. The objective is always to derive the optimization potentials and strategies for action.

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