Competition primer

If you're in the new products projects business, here's a quick review of the competition basics taken from Michael Porter's classic "Competitive Advantage: Creating and Sustaining Superior Performance"

Porter writes: "...the rules of competition are embodied in five competitive forces: the entry of new competitors, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and rivalry among the existing competitors".





For emphasis:

• Entry of new competitors
• Entry barriers
• Expected retaliation
• Threat of substitutes
• Switching costs
• Brand loyalty
• Bargaining power of buyers
• Bargaining leverage
• Price Sensitivity and incentives
• Bargaining power of suppliers, and
• Switching costs
• Forward integration risks 
• Rivalry among the existing competitors
• Over capacity
• Exit barriers

 

 

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