Market Concentration Concepts

Threat of substitutes = Products that fulfill the same customer needs Rivalry among existing firms = Competition among companies in the same industry Key success factors = Requirements for successful participation in an industry Strategic group = Set of companies with similar competitive strategies

Many competitors = Leads to increased competition for market share Equal company size = Results in balanced competitive advantages Slow industry growth = Causes increased competition and market share fights High exit barriers = Prevents companies from leaving the market easily

Who are the customers? = Identifies target audience What are their unmet needs? = Helps in understanding customer desires How do customers choose products? = Analyzes decision-making processes What competitive factors affect survival? = Determines industry success requirements

<p>Strategic group analysis = Examines direct competitors Competitive benchmarking = Evaluates company performance against rivals Understanding competitive factors = Identifies barriers to industry entry Customer analysis = Enhances product offer design</p> Signup and view all the answers

<p>Little product differentiation = Increases threat of substitutes High fixed costs = Encourages price competition Perishable products = Requires efficient inventory management High product switching costs = Enhances customer loyalty</p> Signup and view all the answers

<p>Customer analysis = Informs product design Competitor analysis = Guides strategic decision-making Market position reassessment = Encourages business adaptability Identifying KSFs = Facilitates industry-specific analysis</p> Signup and view all the answers

<p>Price competition = Focuses on lowering prices New product introductions = Targets innovation and differentiation Heavy advertising = Increases brand awareness Market share fights = Results from slow industry growth</p> Signup and view all the answers

<p>Cars = Personal transportation Trains = Mass transit solution Airplanes = Long-distance travel Bicycles = Eco-friendly option</p> Signup and view all the answers

<p>Concentration = Extent to which industry sales are dominated by a few firms Economies of scale = Savings achieved from producing large quantities Bargaining power of buyers = Ability of buyers to influence prices and quality Bargaining power of suppliers = Ability of suppliers to influence supply prices and quality</p> Signup and view all the answers

<p>Threat of entry = Dependence on barriers to industry entry Rivalry among existing companies = Competition level among current firms in the industry Threat of substitute products = Potential for alternative products to satisfy customer needs Bargaining power of suppliers = Suppliers' ability to influence prices and quality</p> Signup and view all the answers

<p>Few buyers = Buyers have significant leverage due to their numbers Product differentiation = Affects buyer power based on uniqueness of the product Little switching costs = Ease of switching to alternative suppliers Backward integration = Buyers can produce the industry's product themselves</p> Signup and view all the answers

<p>Few firms in supply group = Increases suppliers' negotiation power No substitute products = Enhances suppliers' control over prices Unique product = Differentiates suppliers and gives them leverage Supplier switching costs = Challenges buyers in changing suppliers</p> Signup and view all the answers

<p>Threat of entry = Affects new competition entering the market Rivalry among existing companies = Highlights competition among current players Bargaining power of buyers = Buyers' influence on pricing and service Bargaining power of suppliers = Suppliers' influence on pricing and quality</p> Signup and view all the answers

<p>Dominant firms in market = Reduces competition over time High economies of scale = Facilitates lower pricing and barriers to entry Low buyer switching costs = Increases buyer leverage in negotiations Limited substitutes = Strengthens suppliers' influence over the market</p> Signup and view all the answers

<p>Few firms = Suppliers can exercise control over prices Unique products = Suppliers have differentiated offerings Supplier integration = Suppliers can produce industry products themselves High switching costs = Discourages buyers from changing suppliers</p> Signup and view all the answers

<p>Threat of entry = Barriers to new firms entering the market Rivalry among existing companies = Comparative competition among current firms Bargaining power of buyers = Power exercised by large-scale purchasing Threat of substitute products = Availability of alternatives for consumers</p> Signup and view all the answers

<p>Growth stage = Building market share and profitability Shake out stage = Collapse of many small firms Maturity stage = Standardization of products Decline stage = Marked by declining industry sales</p> Signup and view all the answers

<p>Maturity stage = Aggressive marketing activities Growth stage = Expanding customer base through advertising Shake out stage = Exit of unstable competitors Decline stage = Reduction in industry growth rate</p> Signup and view all the answers

<p>Horizontal integration = Merging with similar firms Product pruning = Dropping unprofitable models Process innovation = Achieving low-cost production International expansion = Entering new markets with growth potential</p> Signup and view all the answers

<p>Shake out stage = Reduction of competitors Growth stage = Economies of scale achieved Maturity stage = Using low prices as a competitive tool Decline stage = Industry sales decline</p> Signup and view all the answers

<p>Growth stage = Standardizing products Decline stage = Sales are at their lowest Maturity stage = Emphasis on cost reduction Shake out stage = Industry saturation</p> Signup and view all the answers

<p>Maturity stage = Pruning the product line Decline stage = Remaining competitive in shrinking market Growth stage = Forecasting future competitors Shake out stage = Surviving industry shakeouts</p> Signup and view all the answers

<p>Decline stage = Managing exiting competitors Growth stage = Acquisition of loyal customers Maturity stage = Aggressive marketing and low pricing Shake out stage = Eliminating small competitors</p> Signup and view all the answers

<p>Growth stage = Sales expansion Maturity stage = Market share rivalry Shake out stage = Industry efficiency and consolidation Decline stage = Fewer competitors remaining</p> Signup and view all the answers

<p>Incentives = Encourage foreign investment Taxes = Different rates affecting profits Trade barriers = Restrictions that deter exports Synergy = Combining benefits from multiple locations</p> Signup and view all the answers

<p>Economies of scale = Efficiency through larger production Protecting home market = Defending against competitors' incursions International competition = Need for foreign operations to remain competitive Restrictions and regulations = Higher costs of local operations</p> Signup and view all the answers

<p>Barriers to entry = Easier for foreign companies to enter markets Industry concentration = Reduced market share for top producers Consumer buying power = Increases with more international options Competition = Rising diversity among competitors</p> Signup and view all the answers

<p>Taxes = Maximizing after-tax profits Trade barriers = Making foreign operations attractive Incentives = Stimulating foreign investments Regulations = Potentially lowering domestic operational costs</p> Signup and view all the answers

<p>Incentives = Provided by host country or home government Trade barriers = Can arise from government policies Synergy = Comes from operations in various national environments Taxes = Vary by country affecting corporate strategies</p> Signup and view all the answers

<p>Economies of scale = Support larger production efficiency Protecting home market = Pressure on competitors to retreat International competition = Necessitates global operations Consumer buying power = Grows with increased international offerings</p> Signup and view all the answers

<p>Barriers to entry decline = Facilitates foreign market penetration Industry concentration declines = Indicates more competitive industries Increased competition = Leads to a diverse range of competitors Reset to home operations = Response to foreign market pressures</p> Signup and view all the answers

<p>Trade barriers = May include tariffs and quotas Regulation restrictions = Can elevate local operation costs International competition = Causes necessity for global reach Economic incentives = Aim to boost foreign investment opportunities</p> Signup and view all the answers

<p>Product quality = The overall standard of the product Features and product mix = Variety and characteristics of products offered Customer service = Support provided to customers Pricing policy = Strategy on product pricing</p> Signup and view all the answers

<p>Price decreases = A strategy often leading to competitor response Advertising increases = Usually results in minimal competitor reaction Promotional strategies = Competitors may vary in their engagement Market objective alignment = Influences the type of competitor response</p> Signup and view all the answers

<p>Increasing total demand = Competitors help expand market size Cost sharing = Shared expenses for product development Legitimizing new products = Competitors endorse new innovations Targeting unattractive segments = Competitors serve markets that don't appeal to the company</p> Signup and view all the answers

<p>Assessing performance = Evaluates how products meet customer values Ranking performances = Compares company and competitor effectiveness Monitoring changes = Tracks shifts in customer expectations over time Examining specific segments = Focuses on niche markets for targeted insights</p> Signup and view all the answers

<p>Constructive competition = Collaborating with competitors to increase market size Destructive competition = Undercutting prices to gain market share R&amp;D effectiveness = Innovating to stay ahead in technology Distribution coverage = Ensuring wide availability of products</p> Signup and view all the answers

<p>Primary research = Directly obtaining information from customers Supplier insight = Understanding materials and input logistics Dealer feedback = Gauging retail perspectives and effectiveness Customer analysis = Evaluating market needs and preferences</p> Signup and view all the answers

<p>Strong response = Competitor reacts significantly to a market move Weak response = Competitor changes strategy minimally No response = Competitor remains unaffected by an action Adaptive strategy = Competitor adjusts based on market dynamics</p> Signup and view all the answers

<p>Aggressive pricing = Underpricing competitors to attract customers Differentiation = Creating unique product features to stand out Cost leadership = Offering the lowest price in the market Market segmentation = Targeting specific customer groups for tailored strategies</p> Signup and view all the answers