MindMap Gallery Chapter 9Competitive Factors
ACCA BT, including organization that affect its competitiveness: activities that affect corporate competitiveness, Porter’s Value Chain, SWOT Analysis SWOT analysis, etc.
Edited at 2024-11-16 09:21:05Chapter 9 Competitive Factors competitive factors
3 strategies organizations three strategies
Cost leadershipcost advantage
Differentiation
Focus
the activities of an organization that affect its competitiveness: the activities that affect the competitiveness of an organization
Purchasing
Production
Marketing Marketing
ServiceService
Porter’s Value Chain
5 Primary activities Five main activities
Inbound logistics input may be raw materials, etc.
operations processing and other operations
outbound logistics Outward output, product transportation, etc.
marketing&sales marketing&sales
service after-sales service
4 Support activitiesFour support activities
firm infrastructure solid material foundation
human resourece mangementhuman resources deployment
technology development technology development
procurement
SWOT Analysis SWOT Analysis
S
Strength
W
weaknesses weakness
O
opportunities opportunities
T
threatsthreat
Porter: Five Competitive Forces
Bargaining power of suppliers
high
Few suppliers are in short supply
Few substitute products
High switching costs
Possibility of integrating forward Possibility of integrating forward
Customers are not significant i.e. small Customers are not important, small scale
Supplier’s product is differentiated (unique, scarce, very high quality)differentiated
low
Opposite of high
Bargaining power of customersCustomer bargaining power
high
There are only a few number of buyers and plenty of suppliersSupply exceeds demand
Alternative sources of supply existThere are alternatives
Low switching costLow switching cost
Threat of backwards integrationThreat of backwards integration
Buyers have low profits
Buyers have full information about the market
low
Threat of entryThreat of entry into the market
Threats of new entrantsThreats from new entrants to existing companies
Threat of new companies entering the market
Competitive rivalry with an industry competition with an industry
• Competitors are of similar size or bigger, i.e. Wahaha & Nongfu The original enterprise is large and difficult to compete
slow growth in market The market develops slowly, is small in scale, and is relatively saturated.
High fixed costs: It is difficult for high-cost industries to fight price wars and maintain company operations.
lack of differentiation lack of differentiation
Threats(Risk) of substitutes
No matter which industry has substitutes, the original products will be threatened to a certain extent.
When new companies enter the market, they are prone to high market thresholds, blocked distribution channels, high customer conversion costs, incomparability in scale and magnitude, insufficient funds, and other high costs. However, regardless of whether it is a new or old company, the way to solve the high competitive pressure is to achieve differentiation, form unique advantages, and avoid homogeneous competition.