Porter's competitive analysis

Extract

[...] b - Conditions for success This strategy requires three conditions for success: it must be meaningful, that is to say, it is necessary that the interest rate is differential and is perceived by the buyer. Furthermore, it should be recoverable by the client (the interest should be higher than the overhead it generates, so we can exploit the sources of differentiation and the least expensive is exploited and the differentiation does not require too much communication, and reduce costs functions which have no direct effect on the value chain of the client) and it must also be defensible, that is to say that the advantage created by the differentiation must be sustainable in the long term. [...]

[...] There are conditions: it is necessary that the proposed activity fits easily and the activity has potential for growth, profitability and that access was not a cost deterrent. The incumbents will have to erect barriers for entry to protect their market. A barrier is a strategic advantage that sellers have in place with potential competitors. It has natural barriers (related to the nature of the activity) and artificial ones. E.g. economies of scale, either because they require new entrants to start a large-scale (price war)and they force them to start on a small scale, and incur costs which are a Handicap; the capital requirements, which are the entrance fee (there are sunk costs of R & D advertising.) effect the experience with a curve experience decreasing and connecting the combined costs of production output per unit and it expresses the decrease in the number of hours required to manufacture a product as its production accumulates and it therefore represents the increasing skill of the operators, knowing that the total unit cost of a product decreases to a constant percentage of 20-30%, double of the accumulated production each time. [...]

[...] We must establish a technological and competitive approach - Customers They have bargaining powers. These customers are not necessarily consumers. Their power will be even stronger if it is concentrated, they buy in large quantities and the products are undifferentiated. Their limits of profitability of the sector are by building companies against each other - The power of suppliers Likewise their concentration will play on the sector's profitability. We must also see whether the supplier integration is downstream. And they see if there is a product differentiation and substitution will be difficult because of a change of supplier will incur costs - The role of the state It is a competitive force that is added. [...]

[...] An analysis of the competition after PORTER contains four elements of diagnosis is 2 for 2 for the present and the future. For this was the current strategy or implied each competitor, but also the potential (strengths and weaknesses of competitors). For the future, it waste medium-and long-term, and the assumptions on the evolution of the industry and the company itself. From this we build a typology of competitors, using questions. For example, you'll wonder if the competitor is happy with his current position, he will try to change it, and where it is most vulnerable? [...]

[...] All these approaches require a very detailed analysis at all levels. It uses analytical frameworks that are developed by functions, which are the subject of notice. Similarly in the side of the environment we can build a grid (like grid environment in the company). All this is to observe the strengths and weaknesses of the company. 1 - The structural analysis of the sector The first step is the structural analysis of the sector. It looks upon the problems which lie in the sector, the nature of competition and the principal means which lie between the partners. [...]