Business Policy and Strategy – discussion
Implications of Competition Analysis
This week we will be discussing and providing examples for the various industries to include: growth industry, mature industry, and declining industry.
Identify a growth industry, a mature industry, and a declining industry. For each industry, identify the following;
- the number and size distribution of companies;
- the nature of barriers to entry;
- the height of barriers to entry; and (d) the extent of product differentiation.
Once you have identified an example for each, then, answer the following questions:
- What do these factors tell you about the nature of competition in each industry?
- What are the implications for the company in terms of opportunities and threats?
Note: 150 words are required.
Solution Preview
Competition Analysis
Growing industries face the challenges of a high number of competitors, freedom of entry by other player and the difficult to build a reputation as their product promotion strategies are not yet developed. For mature industries, their position is quite stable as they are well established in the market which makes competition less. However, for the declining industries, rivals have the potential of taking over the industry and hence threatens the progress of the company.
(171 words)