MN1178 B&M in GC 8.Competitive strategy

Porter's competitive strength - "the threat of new competitors" - depends most on the following factors

• high profitability of the industry

• heights of entry barriers (cost of entry to the industry)

• appearance of replacement products

• the structure of sectoral competition

Suppliers can influence the level of the company's competitive position in the industry market ...

• requiring higher quality products and services

• putting pressure on prices to reduce them

• determining the terms of delivery in your favor

• using the absence of substitutes for the delivered goods

Porter's competitive strength - "the rivalry of existing companies in the industry" strongly depends on the following factors:

• heights of exit barriers in the industry

• the appearance of replacement products

• price competition in the industry

• the structure of sectoral competition

Buyers can influence the level of the company's competitive position in the industry market ...

• putting pressure on prices to reduce them

• requiring higher quality products and services

• specifying terms of delivery

• using the absence of substitutes for the delivered goods

Availability of substitute products...

• does not affect the price power of buyers

• increases the price power of buyers

• increases the export-import balance

• reduces the price power of buyers

Increasing customs duties on imported consumer goods can be beneficial...

• only the state

• domestic enterprises that work for export

• domestic companies that produce similar products

• consumers

Suppliers can influence the level of a company's competitive position in the industry market ...

• putting pressure on prices to reduce them

• determining the terms of delivery in your favor

• requiring higher quality products and services

• thanks to the ability to integrate the company into a vertical integration system

• using the absence of substitutes for the delivered goods

Porter's analysis of competitive forces is necessary for...

• determining the company's financial position in comparison with competitors

• finding out the reasons for the current state of competition in the industry under study

• finding out the strengths and weaknesses of competitors in the industry

Porter's competitive strength - "supplier pressure" is the greatest threat to raise prices, forcing organizations to reduce profits in the following situations:

• when the organization of the industry important for the supplying companies

• when vendors use the threat of vertical integration forward

• when it is expensive for a consumer company to switch from one type of supply to another

• when the supplied product has few substitutes and is important to the organization

• when buyers are able to use the threat of their vertical integration back.

The idea is to offer better value to customers through the same value at a lower price.

• Cost leadership strategy

• Differentiation strategy

• Focus (or niche) strategy