Tuesday, November 3, 2009

Sources and Entrance of new competitors

Here are some useful information about new competitors

The most common sources of new competitors are:

  • Companies competing in a related product/market
  • Companies using related technologies
  • Companies already targeting your prime market segment but with unrelated products
  • Companies from other geographical areas and with similar products
  • New start-up companies organized by former employees and/or managers of existing companies

The entrance of new competitors is likely when:

  • There are high profit margins in the industry
  • There is unmet demand (insufficient supply) in the industry
  • There are no major barriers to entry
  • There is future growth potential
  • Competitive rivalry is not intense


Rabbia Nasir Amin said...

it was a very useful and very well-put post !! keep iT up =)