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Competitive Forces Essay

584 words - 3 pages


Michael Porter had identified 5 forces that pose threats to long run attractiveness of a market or market segments. These are –
• Threat of Intense Rivalry
• Threat of New Entrants
• Threat of Substitute Products
• Threat of Buyer’s Growing Bargaining Power
• Threats of Supplier’s Bargaining Power


A simple way of identifying competition is that Unilever competes with P&G; Sony in India competes with LG, Onida, BPL & so on. However, the range is much broader, e.g. – a TV company competes with ideas like vacation for the family or other gifts for loved ones for a share of customer discretionary ...view middle of the document...

– the competitors share to the target mkt.
o Share of Mind – the % of customers who name the competitors in response to the statement/questions – “name the 1st company that comes to mind in this industry.”
o Share of Heart – the % of customers who named the competitor in responding to the statement/question – “name the company from which you would prefer to buy the product.”
Companies that make steady gains in the mind share and heart share of the customers will inevitably make gains in the market share and profitability.


| |Customer awareness |Product quality |Product availability |Technical assistance |Selling staff |
|Competitor A |E |E |P |P |G |
|Competitor B |G |G |E |G |E |
|Competitor C |F |P |G |F |F |
|Note-e=Excellent | | | ...

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