Industry and Competitor

Analysis
Htoo Kyaw Nyo
Industry Analysis
When studying an industry, an entrepreneur must
answer 3 questions.

1. Accessible

• Is the industry accessible? / Is it realistic place for a new venture to enter?

2. Ripe

• Does the industry contain markets that are ripe for innovation or are
underserved
3. Position

• Are there positions in the industry that will avoid some of the negative
attributes of the industry as a whole
 “ Familiar with the face of the country”

“understand industry or industries they plan

to enter and in which they intend to
compete”
Trend

Structure

Type
Industry Trends

Environmental
Trend
• Economic Trend
• Social Trend
• Technological Advances
• Political
• Regulatory

Business Trend
• Other trends affect the industries that aren’t environmental trends
• Trends such as these favours over others
The Five Forces Models

Threat of Threat of
Substitute New
s Entrants
Rivalry
Among
Existing
Firm
Bargainin Bargainin
g Power of g Power of
Suppliers Buyers
 Threat of New Entrants

Six Major Sources of Barriers to Entry

• Economies of scales
• Product differentiation
• Capital Requirements
• Cost advantages independent of size
• Access to Distribution channels
• Government and legal barriers
Rivalry among Existing Firms

Four Primary Factor

• Number and balance of competitor

• Degree of difference between products
• Growth rate of an industry
• Level of fixed cost
Bargaining Power of Suppliers

Factors

• Suppliers concentration
• Switching Costs
• Attractiveness of substitutes
• Threats of forward integration
Bargaining Power of Buyers

Factors

• Buyer group concentration

• Buyer’s Cost
• Degree of standardization of a supplier’s product
• Threat of backward integration
 Industry Types

Emerging • Recent changes in demand or technology: new industry First-mover

Industries standard operating procedure have yet to be developed advantages

Fragmented • Large number of firms of approximately equal in size Consolidatio

Industries n

Process and
• Slow increase in demand, numerous repeat customers,
after-sales
Mature Industries and limited product innovation service
innovation

• Consistent Reduction in industry demand Leaders,

Declining niche,
Industries harvest and
divest
• Significant international scales Multinationa
Global Industries
l and global
Competitor Analysis
Identifying Competitors

Direct Indirect Futures

Competitors Competitors Competitors
• Business • Business • Business that are
offering offering close not yet direct or
identical or substitute indirect
competitors but
similar product products
could be at any
time
• Sources of Competitive Intelligence

• Completing a Competitive Analysis Grid

Thank
You