Few customers; quality needs to be improved; high sales costs; overcapacity; leader; R&D technology transformation to improve quality; few competitors; high prices, high gross profit and low net profit margin.

The sales base is expanding; product performance differences are large and sales are rising; unit-shared advertising costs are declining; production capacity is insufficient; strive for the largest market share; marketing changes the price and quality image; competitors are pouring into mergers and acquisitions; the highest price unit has the highest net profit .

New customers reduce repeat purchases by old customers; products are gradually standardized and differences are not obvious; sales expense sharing is further reduced; production is stable and there is partial overcapacity; market share is consolidated to increase returns; efficiency is improved to reduce costs; the market is large but basically saturated, provoking price wars; prices Gross profit declined and net profit margin declined moderately.

Customers are smart and have high cost-effectiveness requirements; product differentiation is small, and cost reduction may cause problems; there is basically no advertising; there is overcapacity, and only companies with mass production and distribution channels are competitive; defend first to obtain the final cash flow; control cash with positive costs traffic; competitors exit the market before the product; gross profit is low. After most companies exit, prices increase.

It’s not clear which stage different industries are in

Industrial growth is not always S-shaped

Companies can influence the growth rate curve through product innovation and product repositioning

The competitive attributes that are first contacted at each stage vary from industry to industry.

structural barriers

behavioral disorders

drop-in replacement

indirect substitute

Substitution depends on: cost-effectiveness, high value to gain competitive advantage

Business concentration and business volume

Degree of product differentiation and asset specificity

degree of vertical integration

information mastery

Labor is also part of the supplier and can be negotiated collectively.

Numerous evenly matched rivals

Industrial development is slow

Customers believe that products are of the same quality

Industrial excess production capacity

Industry entry and exit barriers

Model is static

Determine profitability for profitable industries, not applicable to non-profit organizations

Analysis based on assumptions, ideally

Assume knowledge of the entire industry

Underestimating the long-term cooperative relationship between enterprises and upstream and downstream companies

Inadequate consideration of the components of industrial competitiveness

Raise barriers to entry and reduce the level of competition among their businesses