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The micro-environment consists of customers, partners, and competitors. [3] The most important aspect of micro-environment is the customer market. [5] There are different types of customer markets include consumer markets, business markets, government markets, globalization international markets, and reseller markets.
A graphical representation of Porter's five forces. Porter's Five Forces Framework is a method of analysing the competitive environment of a business. It draws from industrial organization (IO) economics to derive five forces that determine the competitive intensity and, therefore, the attractiveness (or lack thereof) of an industry in terms of its profitability.
In addition to analysing current competitors, it is necessary to estimate future competitive threats. The most common sources of new competitors are: Companies competing in a related product/market; Companies using related technologies; Companies already targeting the target prime market segment but with unrelated products
The purpose of the situation analysis is to indicate to a company about the organizational and product position, as well as the overall survival of the business, within the environment. Companies must be able to summarize opportunities and problems within the environment so they can understand their capabilities within the market. [4]
Competitive landscape is a business analysis method that identifies direct or indirect competitors to help comprehend their mission, vision, core values, niche market, strengths, and weaknesses. [1] Based on the volatile nature of the business world, where companies represent a competition to others, this analysis helps to establish a new mind ...
The monopolistic competition market has a relatively large degree of competition and a small degree of monopoly, which is closer to perfect competition, and is much more realistic. It is common in retail, handicraft, and printing industries in big cities. Generally speaking, this market has the following characteristics. 1.
Competitive intelligence is a legal business practice, as opposed to industrial espionage, which is illegal. [4]The focus is on the external business environment. [5]There is a process involved in gathering information, converting it into intelligence, and then using it in decision-making.
This can cause companies making low or negative returns to stay in the market leading to excess capacity meaning that healthy competitors' profitability will suffer. Competitors are competing on price. Price competition is particularly destructive to profitability as it is easy to identify price competition meaning other competitors can retaliate.