Factor analysis of three-dimensional competitive strategy model

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Edited at 2022-09-07 15:25:48

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Factor analysis of three-dimensional competitive strategy model

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Outline

Factor analysis of three-dimensional competitive strategy model

definition

The three-dimensional competitive strategy model is a method of analyzing a company's competitive environment and formulating corresponding strategies.

It divides the competitive environment into three dimensions, namely industry structure, strategic competitors and internal resources and capabilities.

By delving into these factors, a business can better understand its position in the market and provide appropriate strategic options.

Industry structure

definition

Industry structure refers to the relationship between competitors in a specific market and the characteristics of the market.

factor

Market Size: Measures the size and potential of the market.

Market Growth Rate: Measures how quickly a market is developing.

Industry profit margin: Describes the profit level that companies in this industry can achieve.

Market Concentration: Measures the distribution of companies in the market.

Barriers to Entry: Describe the barriers faced by new companies entering the industry.

strategic competitor

definition

Strategic competitors are other companies that compete with a company in a specific market.

factor

Number of Competitors: Measures the intensity of competition in the market.

Competitor's strategy: Describe the strategic goals that the competitor is pursuing.

Competitors' Resources and Capabilities: Analyze competitors' strengths relative to the company's.

Competitor's Market Position: Measures the competitor's position and influence in the market.

Competitor responsiveness: Anticipating competitors' likely reactions to a company's actions.

Internal resources and capabilities

definition

Internal resources and capabilities refer to the resources and capabilities owned by the company itself and their influence on the competitive environment.

factor

Core Competencies: Describe the company's core advantages relative to its competitors.

Brand Value: Measures the visibility and value of a company's brand in the market.

Technical capabilities: Measures a company's capabilities in R&D and innovation.

Operating Efficiency: Describes a company's level of efficiency in operations and management.

Financial health: Measures a company's financial health and sustainability.

Summarize

Three-dimensional competitive strategy model factor analysis is a comprehensive and systematic analysis method that can help companies deeply understand the market environment and their own competitive advantages.

By studying factors in the three dimensions of industry structure, strategic competitors, and internal resources and capabilities, companies can develop more targeted competitive strategies to enhance market competitiveness.