Business Analysis : Senior Executives Desperately Need New Tools Essay

Managers generally consider the rivalry among competitors as a major source for deriving strategy. As explained by the Michael Porter it is a narrow view of competition. A set of other parameters should be evaluated, mentioned in article as five competitive forces, along with industry

Businesses face cut throat competition every day and in order to survive the battle with other competitors.

Competitive Rivalry As you study the model, you will see that the rivalry is the component that all the competition and their threats centers around. Please describe this for Company G.

Businesses are not only faced with competition within the industry they operate in. They also face competition from businesses in other industries.

Porter, M. E. CompetitiveS trategy. (1980): Techniques for Analyzing Industries and Competitors. New York: Free Press.

Competition being one of the major issues that often must be addressed in the business world, it is important for a firm to learn on ways to reduce the impact of the competition. Competition is definitely an important factor in helping a business

As technology continue to refine how products and services are delivered to consumers, competition among industry participants becomes more refined. Organizations that are able to keep up with changing technologies become leaders while those that are not fall behind. Mergers and acquisitions are increasing while causing small businesses to sell out or seek partnerships and cooperatives in order to remain competitive and relevant.

Existing Competitors. Rivalry among competitors within an industry use price discounting, new products, marketing, and other techniques to be competitive. Profitability of an industry suffers from high rivalry. The intensity with which companies compete and the basis on which they compete determine to which degree rivalry brings down an industry’s profitability (Porter, 2008). Pure competition is considered by economists as a competition with a high

The marketplace has been dynamic and competition between companies in the same industry has been increasingly intense (Ranchhod, 2004). Having dynamic capabilities contributes to a company’s “long-term survival or competitive advantage” (Johnson et al., 2008: 84). This is especially essential

The competitor’s analysis takes into consideration the competitors position inside the industry and the potential danger it might pose to different businesses. The principle motivation behind the competitor’s analysis is for the business to break down both the present and potential nature and abilities of a competitor, to be set up or go against

In this section we look at who are our competitors in the same industry and how can we gain the large portion of the market share and profits. However, if the level of competition becomes too high it can ultimately lead to a decrease in profits. There has been an increase in the amount of competitors on the tourism industry over the last 10 years, with the introduction of online sales and new airlines. For the tourism industry the level of competition can be quite high as

Competitor is being defined as any person or entity which is a rival against another . In the automotive industry , companies would normally encounter the presence of one of more competitors since they offer a similar product or service . Therefore , a company would require a new strategy in order to stay ahead in the race to become the dominant manufacturing of automobiles . This has not been the case for local automotive manufactures in Malaysia . Proton Holdings Berhad has been receiving an uproar of issues , including its inability to compete with other automotive industry .

The competitive environment : competition from the industry can impact a company’s strategy and operation. For example if a competitor release a new or similar product that threaten to steal market share, an organization must be ready to change in order to retain its

In the 90s, competition has become too turbulent to analyse or manage. While many called for a more dynamic approach, arguing that managers have been using archaic models of strategy in the face of changing trends. Revolutionary technology, advances in communication, globalization, and connectivity were just some of the new global trends organizations needed to keep up with. This became an era of “hypercompetition”, and D’Aveni’s focus of research. In this environment, very flexible, aggressive competitors eroded the advantages of long-standing major organizations. The school of thought before D’aveni was that organizations needed to sustain their competitive advantage. However, the truth in this era was, no advantage can be sustained.

Rivals are competitors within an industry. Rivalry in the industry can be weak, with few competitors that don't compete very aggressively. Or it can be intense, with many competitors fighting in a cut-throat environment.