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Rivalry tends to increase when

Rivalry tends to increase when. there is downward pressure on price there are high exit barriers demand for the product is growing slowly or not at all. Rivalry tends to increase when. competitors become more equal in size and capability when customers’ switching costs are low

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Rivalry tends to increase when

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  1. Rivalry tends to increase when • there is downward pressure on price • there are high exit barriers • demand for the product is growing slowly or not at all

  2. Rivalry tends to increase when • competitors become more equal in size and capability • when customers’ switching costs are low • one or more competitors is not satisfied with its position

  3. Barriers to entry • high customer loyalty (high switching costs to customers) • economies of scale • learning/experience curve

  4. Barriers to entry • resource requirements (money, access to supplies, distribution, etc.) • regulations, tariffs, trade restrictions internationally, local content • access to specialized resource

  5. Rivalry, exit barriers, demand Demand conditions Exit barriers

  6. Product life cycle • understand competitor dynamics • understand buyer behavior • predict future

  7. Industry life cycle • beginning industry • fragmented industry • consolidated industry

  8. INDUSTRY ATTRACTIVENESS

  9. WEIGHT: RELATIVE IMPORTANCE OF EACH TO COMPANY RATING: ATTRACTIVENESS OF FACTOR TO COMPANY OR “STATE” OF FACTOR IN INDUSTRY

  10. IMPORTANT POINTS: 1. DETERMINE THE FACTORS (AGREE?) FIRST CATEGORY SECOND CATEGORY CHANGES IN CATEGORY? 2. JUDGE WEIGHTS (AGREE?) 3. JUDGE RATING (AGREE?)

  11. INDUSTRY FACTORS • GROWTH RATE • MARKET DIVERSITY • PRICING • COMPETITIVE STRUCTURE • INFLATION • CYCLICALITY • LIFE CYCLE (PRODUCT, INDUSTRY)

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