summary week 5 (GSLC)

Summary Entrepreneurship week 5 (GSLC)

Industry & Competitors  Analysis

                Industry analysis is  a business research framework or tool that focuses on an industry’s potential.The knowledge gleaned from this analysis helps a firm decide whether to enter an industry and if it can carve out a position in that industry taht will provide it a competitive advantage.Environmental trends and business trends are the two main components of “industry trends”.Environmental trends include economic trends,social trends,technological advances and polotical and regulatory changes.Firms use the “five forces model” to understand an industry’s structure.The parts of Porter’s five forces model are threat of subtitutes,threat of new entrants,rivalry among existing firms,bargaining power of suppliers and bargaining power of buyers.

                What entrepreneurs should understand is that each individual force has the potential to affect the ability  of any firm to generate profits while competing in the industry or a  segment of an industry.There are five primary industry types entrepreneurial firms consider when choosing the industry in which they will compete.These industry types and the opportunities they offer are as follows : emerging industry or first-mover advantage : fragmented industry or consolidation : mature industry or emphasis on service and process innovation : declining industry or leadership,niche,harvest and divest and global industry or multidomestic strategy or global strategy.

                A competitor analysis is a detailed analysis  of a firm’s competition.It helps a firm understand the posititions of it’s major competitors and the opportunities that are available to obtain a competitive advantage in one or more areas.Successful competition demands that a firm understand its competitors and the actions they may take in the future.A competitive analysis grid is a tool for organizing the information a firm collects about its competitors.This grid can help a firm see how it stacks up against its competitord,provide ideas for markets to pursue and perhaps most importantly identify its primary sources of competitive advantage

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Gabriela Hartanto

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