How to conduct industry and industry competition analysis

How to conduct industry and industry competition analysis

Industry and competition analysis is a strategic evaluation of important aspects of the company's business ecological environment. There are significant differences between industries in economic characteristics, competitive environment and future profit prospects. The change of economic characteristics of the industry depends on the following factors: the total demand of the industry and the growth rate of the market, the speed of technological change, and the geographical boundary of the market (region? Nationwide? ), the number and scale of buyers and sellers, is the seller's product or service unified or highly differentiated? The impact of economies of scale on costs and types of distribution channels reaching buyers; The difference between industries is also reflected in the importance attached to the competition of the following factors: price, product quality, efficiency characteristics, service, advertising and promotion, and innovation of new products. In some industries, price competition is dominant; However, in other industries, the core of competition may focus on quality, product efficiency, or brand image and reputation. The economic characteristics, competitive environment and its changing trend of an industry often determine its future profit prospects. For those unattractive industries, it is difficult for the best companies to make satisfactory profits. On the contrary, in attractive industries, weak companies can also achieve good business performance. This course will focus on the following contents: 1. Because there are great differences in characteristics and structure between industries, industry and competition analysis should first grasp the most important economic characteristics of the industry as a whole. L market size: small markets generally cannot attract large or new competitors; A big market usually interests companies because they want to establish a firm competitive position in an attractive market. Scope of competition: Is the market local? Regional or national? L Market growth rate: a fast-growing market will encourage other companies to enter; The slow-growing market intensifies market competition and makes weak competitors out. At what stage of the growth cycle is the industry currently in: initial development stage, rapid growth stage, mature stage, stagnation stage or recession stage? L Number and relative scale of competitors: Is the industry subdivided by many small companies or monopolized by several large companies? L the number and relative size of buyers; L the type of distribution channel that comes into contact with the buyer; L the speed of product production process innovation and new product technology innovation; L Are competitors' products and services strongly differentiated, weakly differentiated, identical or undifferentiated? Can companies in the industry achieve economies of scale in procurement, manufacturing, transportation, marketing or advertising? Do some activities in the industry have the characteristics of learning and experience effect, which leads to the decrease of unit cost with the increase of cumulative output? Does the capacity utilization rate largely determine whether the company can obtain cost production efficiency? Because overproduction tends to reduce prices and profit margins, and when it is in short supply, it will increase prices and profit margins. Necessary resources and the difficulty of entering and exiting the market: High barriers can often protect the status and profits of existing companies, while low barriers make the industry vulnerable to the impact of new entrants. Is the profit level of L industry above average or below average? High-profit industries attract new entrants, and the sluggish industry environment often accelerates the withdrawal of competitors.

What does the analysis of product competitiveness include?

1 product competitiveness analysis (1) cost advantage means that the company's products rely on low cost to obtain higher profitability than other enterprises in the same industry. In many industries, cost advantage is the key factor to determine competitive advantage. Enterprises generally achieve cost advantages through economies of scale, proprietary technology, preferential raw materials and low labor. The scale benefit determined by capital concentration is the basic factor that determines the company's production cost. When the enterprise reaches a certain capital investment or production capacity, according to the theory of scale economy, the production cost and management cost of the enterprise will be effectively reduced. The evaluation of the company's technical level can be divided into two categories: hardware and software. Technical hardware parts, such as mechanical devices, stand-alone or complete sets of devices; Software part, such as: production technology, industrial property rights, patented equipment manufacturing technology and management technology, what kind of production capacity and scale, enterprise's ability to expand reproduction, etc. In addition, if enterprises have more technicians, it is possible to produce products with high quality, low price and marketable products. Raw materials and labor costs should consider the company's raw material sources and the region where the company's production enterprises are located. The cost advantage is obtained, and the enterprise is in a favorable position in the fierce competition, which means that the enterprise is still profitable in the case of competitors' losses, and the risk of losses is small; At the same time, the advantage of low cost also makes other enterprises that want to take advantage of price competition have scruples and become a restraining force of price competition. (2) Technological advantage The technological advantage of an enterprise means that the enterprise has stronger technical strength and the ability to develop new products than other competitors in the same industry. This ability is mainly reflected in the technical level of production and the technical content of products. In modern economy, the research and development ability of new products is the key to determine the success or failure of enterprise competition. Therefore, any enterprise will generally determine a certain proportion of R&D expenses in sales, which often determines the new product development ability of the enterprise. Product innovation includes developing new core technologies and developing a new generation of products; Develop new technologies and reduce existing production costs; Divide products according to market segments. Technological innovation includes not only product technology, but also innovative talents, because technical resources themselves include talent resources. Now most listed companies pay more and more attention to the introduction of talents. In the fierce market competition, whoever seizes the commanding heights of intellectual capital first will be a shoo-in. The main body of technological innovation is high-level innovative talents with high intelligence and creativity. Implementing innovative talent strategy is the only way for listed companies to win competition, and listed companies with technological advantages often have greater development potential. (3) Quality advantage Quality advantage means that the company's products win the market with higher quality than similar products of other companies, thus gaining a competitive advantage. Due to differences in technical ability and management, the quality of the same product varies from company to company. When consumers choose to buy, although there are many factors that will affect their purchasing tendency, the quality of products is always an important factor that affects their purchasing tendency. Quality is the guarantee of product reputation, and good quality products will bring trust to consumers. Strict management and continuous improvement of the company's product quality are effective ways to enhance the company's product competitiveness. Listed companies with product quality advantages often occupy a leading position in this industry. 2 Market share analysis of products The market share of a company's products plays an important role in measuring the competitiveness of the company's products, and it is usually investigated from two aspects. First, the geographical distribution of the company's product sales market. From this perspective, the company's sales market can be divided into regional type, national type and world type. The geographical scope of the sales market can roughly estimate the operating ability and strength of a company. The second is the market share of the company's products in similar products. Market share is a more accurate estimate of the company's strength and management ability. Market share refers to the proportion of a company's product sales to the total market sales of such products. The higher the market share, the stronger the company's operating ability and competitiveness, and the better and more stable the company's sales and profit level. The company's market share is the source of profit. The company's market share with good benefits and long-term existence is bound to be long-term stable and showing an increasing trend. Constantly pioneering and enterprising, tapping the existing market potential and constantly marching into new markets are the main means to expand market share and improve market share. 3. Brand strategic brand is the general name of a commodity name and trademark, which can be used to distinguish a seller or seller group of goods or ......

Briefly describe the competitiveness of five industries, and analyze which factors determine the size of each competitiveness.

1. Analysis of five kinds of competitiveness

(1) Entry threat of potential entrants.

Potential entrants will reduce the profits of existing enterprises in the industry from two aspects: first, entrants will carve up the original market share and get some business; Second, entrants reduce the market concentration, thus stimulating the competition among existing enterprises and reducing the price-cost difference.

For an industry, the size of the entry threat depends on the entry obstacles that potential entrants may encounter and the counterattack of existing incumbents. They are all called entry barriers, the former is called "structural barriers" and the latter is called "behavioral barriers".

(1) structural obstacle. Porter pointed out that there are seven main obstacles: economies of scale, product differences, capital requirements, switching costs, distribution channels, other advantages and * * * policies. These seven main obstacles can be summarized as three main barriers to entry: economies of scale, control of key resources by existing enterprises and market advantages of existing enterprises.

1) economies of scale. Economies of scale mean that in a certain period of time, when the absolute quantity of products or services produced by enterprises increases, their unit costs tend to decrease. When the industrial scale economy is significant, the old enterprises operating at or above the minimum effective scale have cost advantages for smaller new entrants, thus forming entry barriers.

2) Control of key resources by existing enterprises. The control of key resources by existing enterprises is generally manifested in the accumulation and control of funds, patents or proprietary technologies, raw material supply, distribution channels, learning curves and other resources and resource use methods. If the existing enterprises control certain resources necessary for production and operation, they will be protected and will not be infringed by the entrants.

3) Market advantages of existing enterprises. The market advantage of existing enterprises is mainly manifested in the brand advantage. This is the result of product differentiation, that is, customers or users have different loyalty to enterprise product quality or brand reputation. And the differences between the products formed.

② Behavior disorder (strategy disorder). Behavior barrier refers to the entry barrier formed by the existing enterprises retaliating against the entrants. There are two main types of retaliation:

1) Restrict entry pricing. Restricted entry pricing is often an important weapon for incumbent large enterprises to retaliate against entrants, especially in those markets where technological advantages are weakened and investment is increased. There is an assumption behind the maximum price limit, that is, in the long run, the income obtained under the condition of lower price that is enough to prevent entry will be the greatest than that obtained under the condition of higher price that attracts entry. The incumbent enterprise tries to tell the entrant that it is low-cost through low price, and it is unprofitable to enter.

2) Enter the other side's territory. Entering the other side's field is a common retaliation in oligopoly market, aiming at offsetting the advantages that may be brought by the entrants taking the lead and avoiding the risks brought by the other side's behavior.

(2) The substitution threat of substitutes.

To study the substitution threat of substitutes, we need to clarify two concepts of "product substitution" first. There are two kinds of product substitution, one is direct product substitution and the other is indirect product substitution.

① Direct product substitution. That is, one product directly replaces another product. For example, Apple computer replaced Wang An computer. The substitute in Porter's definition of industry quoted earlier is a direct substitute.

② Indirect substitution. That is, products that can play the same role indirectly replace other products. Porter's threat to an industry mentioned here refers to indirect substitutes.

Substitutes are often the product of new technologies and social needs. Whether the new product can replace the old product mainly depends on the comparison of the "valence" ratio of the two products. If the valence ratio of new products is higher than that of old products, it is inevitable that new products will replace old products. If the valence ratio of the new product is lower than that of the old product, then the new product will not have enough strength to compete with the old product.

Because old products and new products are in different product life cycles, there are different ways to enhance the value of new and old products. When the threat of substitute products becomes more and more serious, old products are often in a mature or declining period. At this time, the design and production of products have been highly standardized and the technology is quite mature. Therefore, the main way to improve the value of old products is to reduce prices and costs.

Of course, the threat of substitution of substitutes does not necessarily mean that new products will eventually replace old products. It is also common for several substitutes to exist for a long time. However, the competition law between substitutes remains unchanged, that is, products with high value win competition. ......

What is the five-force model in industry analysis?

The five-force model was put forward by MichaelPorter in the early 1980s to analyze the competitive strategy, which can effectively analyze the competitive environment of customers.

The five-force model brings together a large number of different factors in a simple model to analyze the basic competitive situation of an industry. The five-force model determines five main sources of competition, namely, the bargaining power of suppliers and buyers, the threat of potential entrants, the threat of substitutes, and finally the competition between companies in the same industry. The proposal of feasible strategy should first include the confirmation and evaluation of these five forces. The characteristics and importance of different forces vary with different industries and companies.

The five-force model holds that five competitive driving forces, namely, the existing competitive situation of the industry, the bargaining power of suppliers, the bargaining power of customers, the threat of substitute products or services and the threat of new entrants, determine the profitability of enterprises, and points out that the core of the company's strategy should be to choose the right industry and the most attractive competitive position in the industry.

The five-force model brings together a large number of different factors in a simple model to analyze the basic competitive situation of an industry. The five-force model determines five main sources of competition, namely, the bargaining power of suppliers and buyers, the threat of potential entrants, the threat of substitutes, and finally the competition between companies in the same industry. The proposal of feasible strategy should first include the confirmation and evaluation of these five forces. The characteristics and importance of different forces vary with different industries and companies, as shown in the following figure: 1. The bargaining power of suppliers is the main way for suppliers to influence competitors in a certain industry by raising prices (to squeeze the profits of buyers) and reducing the quality of products or services provided. The following factors determine its impact: (1 (2) the standardization degree of suppliers' products. (3) The proportion of products provided by suppliers to the overall product cost of the enterprise. (4) The importance of products provided by suppliers to the production process of enterprises. (5) The comparison between the supplier's supply cost and the enterprise's own production cost. (6) The influence of products provided by suppliers on the product quality of enterprises. (7) The switching cost of enterprise's raw material procurement (8) The strategic intention of' supplier forward integration' 2. The bargaining power of buyers is the same as that of suppliers, and buyers can also become a threat to the profitability of the industry. Buyers can lower the price, or demand higher quality or more services. In order to achieve this goal, they may let manufacturers compete with each other, or they may not buy goods from any manufacturer. Buyers can generally be divided into industry customers or individual customers, and buyers' buying behavior is generally irrelevant to this classification method. One exception is that industrial customers are retailers, and they can influence consumers' purchasing decisions, so the bargaining power of retailers is significantly enhanced. The following factors affect the bargaining power of buyers: (1) collective purchase (2) standardization of products (3) sensitivity of buyers to product quality (4) substitution degree of substitutes (5) universality of bulk purchase (6) proportion of products in buyers' cost (7) strategic intention of buyers to integrate backward (3) threat of new entrants. Entrants in an industry usually bring a lot. In addition to a perfectly competitive market, new entrants to the industry may shake the whole market. This is especially true when entering an industry step by step and purposefully. The seriousness of the threat of new entrants depends on the possibility of new enterprises entering the industry, barriers to entry and expected retaliation. The first point mainly depends on the industry prospects. The high growth rate of the industry indicates that the future profitability is strong, and the immediate high profits are also quite attractive. For the above two threats, customers need to study the conditions of difficulty in entering barriers, such as steel industry, shipbuilding industry, automobile industry and economies of scale, as well as product differences, such as cosmetics and health care products. The threat of substitutes refers to those products with the same or similar functions as customers' products. Such as saccharin at work. ......

What is the core competitiveness of an enterprise?

The core competitiveness of enterprises includes several aspects:

First, the innovative competitiveness of enterprises, especially the innovative power of products;

Second, the ability of enterprises to organize resources;

Third, the talent competitiveness of enterprises;

Fourth, the management competitiveness of enterprises;

Fifth, the brand competitiveness of enterprises;

Basically, core competitiveness can be a comprehensive reflection of the above, or it can be a reflection of a certain aspect, but in any case, an enterprise must have its own unique advantages in participating in the competition!

How to analyze the core competitiveness of enterprises

Understand what core competitiveness is and what elements it contains, and then see if this enterprise has these elements, which are specifically suspected of advertising, and then compare with some peers.

From what aspects should enterprises analyze their competitors?

Reprint the following information for your reference.

How to analyze competitors

Now enterprises are in a super-competitive environment, new competitors are constantly entering, and the integration within the industry is intensifying. In such a rapidly changing market environment, whoever can grasp the market opportunities and the dynamics of competitors in time will have the initiative in competition. Therefore, it is particularly important to analyze competitors.

First of all, here are two concepts.

First, competitors and competitors. Every enterprise lives in a certain industry environment. There are many competitors in this industry, but not every competitor is your competitor. So what kind of enterprises can be called competitors? Only those competitors who can compete with enterprises can be called competitors. Therefore, when analyzing competitors, we should be targeted and not cover everything.

Second, competition analysis and competitor analysis. Competitor analysis is only a part of competition analysis. In addition to competitor analysis, competition analysis also includes industry competition environment analysis, supplier analysis, dealer analysis, potential entrants analysis and substitute product analysis.

This paper focuses on how to analyze competitors.

First, the framework of competitor analysis.

Faced with a large number of financial data, market information and other information, how to sort out and screen these information and how to analyze competitors is an important topic for enterprise information workers.

The author thinks it is very important to establish a framework for competitor analysis. Classify the messy information according to the established framework, avoid the blindness of intelligence work, and collect the information of competitors with a clear aim. There are three frameworks for competitor analysis.

1. Competitor analysis framework based on balanced scorecard

The balanced scorecard examines the performance of enterprises from four aspects: learning and innovation, internal business processes, customers and markets, and finance. Since the balanced scorecard can be used to examine the performance of enterprises, it can also be used to analyze competitors.

Using the balanced scorecard to analyze competitors' indicators, enterprises can choose indicators according to the key success factors of their own industries, and then analyze competitors. The choice of index weight also needs to be mastered by enterprises themselves.

Some information to be analyzed is public, such as market information and financial information. Some information is difficult to obtain, such as the information of internal business processes. The best way to analyze internal business processes is to use benchmarking. Benchmarking, also known as benchmarking or reference management. This management method was initiated by Xerox in the late 1970s, and then systematized and standardized by American Productivity and Quality Center. According to a study of America 1997, nearly 90% of the world's top 500 enterprises in 1996 have applied benchmarking in their daily management, including AT & amp； T, Kodak, Ford, IBM, Xerox, etc. The basic idea of benchmarking is to set the goal of learning and catching up with the performance and practical measures of the most competitive enterprises or those leading and most prestigious enterprises in the industry in terms of products, services or processes. Through a series of standardized procedures such as data collection, comparative analysis, tracking learning, redesign and implementation, the actual situation of this enterprise is quantitatively compared and evaluated with these benchmarks, and on this basis, the best strategy to improve the performance of this enterprise is selected, so as to catch up with or surpass competitors. In order to further enhance the core competitiveness of enterprises, China Offshore Oil Corporation chose Statoil as a benchmark to conduct benchmarking management. This is the first time that China enterprises have chosen large foreign companies for all-round benchmarking. Statoil was founded in 1972, ranking 14 among the world oil companies, and CNOOC ranked around 50. Statoil has many similarities with CNOOC in its development history, but CNOOC is far from it and comparable to some extent. This is one of the reasons why CNOOC chose Statoil as the benchmark. Through benchmarking, CNOOC's management level and core competitiveness have been greatly improved. Benchmarking management provides a good way and method for enterprises to analyze the internal business processes of competitors and find out the gap with competitors.

2. Potter's competitor scores ......

How to analyze the competitiveness of enterprises?

The competitiveness of enterprises is nothing more than a detailed analysis of resources, products, markets and policies.

This answer is too general.

These are all necessary conditions for an enterprise to operate.

The competitiveness of enterprises is mainly reflected in two aspects: relative and absolute; Adam Smith's Analysis of Relative Trade Advantage and Absolute Trade Advantage

If your company is engaged in medicine and develops a drug for cancer or AIDS, you are the number 1 in the industry, which is an absolute advantage.

Or suppose your company is engaged in medicine, and now there are two companies on the market that can produce AIDS drugs, and you are one of them; You are in the north and the other is in the south. Because of geography, market, public relations and other reasons, when the other party does not enter the northern market, you have an absolute advantage in the northern market; When the other party occupies less than 50% market share in the northern market, you have a comparative advantage.

This analysis is more troublesome, generally from the perspective of enterprise strategy.

In addition, business management is often a difficult problem, which is of great help to your growth and knowledge. It is also suggested that the landlord can add some points appropriately in the future; So we can all study together and improve together.

Please accept the answer, hehe.

How to do industry analysis?

Industry analysis refers to the in-depth analysis of industry factors such as economic implementation, product production, sales, consumption, technology, industry competitiveness, market competition pattern and industry policies. According to the principles of economics, we can find the internal economic laws of industry implementation and further predict the future development trend of the industry. Industry analysis is a meso-level analysis between macro-economic and micro-economic analysis, the only way to discover and master the law of industry implementation, the brain of enterprise development in the industry, and the decisive significance to guide the business planning and development of enterprises in the industry.

Comprises the following processes:

Basic situation analysis

General feature analysis

Analysis of industrial structure

What is the core competitiveness of modern enterprises?

What is the core competitiveness of an enterprise?

Competitiveness has been the most commonly used word in the media, and it is also a word that people are familiar with.

When it comes to enterprise competitiveness, people may list market share, profitability, technological leadership, independent property products, customer stability and so on.

However, what is the core competitiveness of enterprises? Maybe people will have different opinions. And the core competitiveness of different industries may be different.

So, let's take a look-what is the core competitiveness of enterprises?

CNOOC: Benchmarking Management

Comments and descriptions

"Benchmarking Management" originated from Xerox, the first company in the United States to learn from Japan in the late 1970s and early 1980s. 1976, Xerox, which has been the leader in the world copier market, was challenged by Japanese companies, and its market share plummeted from 82% to 35%. Faced with the threat, Xerox began benchmarking research on Japanese companies, and the result was to regain the market.

The development process of Motorola is another positive and negative teaching material of benchmarking. 1974 Motorola was forced to withdraw from the TV market under the great pressure of Japanese companies. It persisted in its position for several years, until the mid-1980s, when it began to study in detail the operation mode of Japanese enterprises, especially how the best Japanese enterprises established their competitive advantages on a global scale. Not only did they compete with Japanese companies, but in order to shorten the delivery time, they also specialized in pizza delivery shops and fedex companies, thus setting their own new delivery standards and greatly shortening the delivery time. It can be said that without the benchmark of that year, there would be no success of Motorola today.

Benchmarking management is an art, and its result should not only be a pile of data, but also include data-based analysis, so as to help enterprises find out the gap and gain core competitiveness.

The office of China Offshore Oil Corporation is a busy organization. Now, they have one more job, which is to prepare a set of analysis reports.

In this group of reports, CNOOC's economic and technical indicators are broken down in detail and compared with the top five international oil companies one by one. In management, this practice is called benchmarking, which means that enterprises compare their products and management methods with advanced enterprises to enhance their competitiveness. This is the first time that a state-owned enterprise in China has conducted such a large-scale benchmarking with overseas enterprises.

Among the five overseas companies as a reference system, Statoil is the most important one, because the comparison between CNOOC and the other four companies is only at the core business level, while the comparison with Statoil is all-round.

Statoil was founded in1972,2001and listed in new york and Oslo. Fortune magazine listed it as a global top 500 189, and world oil company 14.

China Offshore Oil Corporation was established in 1982 and listed in new york and Hongkong in 2002. It is one of the three largest oil companies in China, ranking about 50th among the world oil companies.

However, why did CNOOC choose Statoil instead of Shell or Exxon? Fu Chengyu, president of CNOOC, explained: "It's like a race. Now I am the 20th, so what I catch up with is not the first and the second, but 19, 18, 17. Moreover, Statoil has many similarities with us in the development history, and we have a big gap with it, which is comparable and can be learned. "

Benchmarks are mainly about competitiveness. CNOOC decomposes the contents related to competitiveness into six aspects: company size, sustainable profitability, development ability, management level, internationalization degree and anti-risk ability.

In the comparison between these six items and 65,438+08 items, CNOOC knows that it is at a disadvantage except the net profit from sales. Among them, the ratio of assets to Statoil is 1: 4, the annual output ratio is 1: 4, the operating income ratio is 1: 7, the internationalization degree is1:1,and the R&D expense ratio is/.

Through benchmarking, CNOOC employees felt the gap and pressure. What President Fu Chengyu can't sit still most is that the scale is too small, and the most important thing is the ability of sustainable development. "The ability of sustainable development reflects whether a company can keep up with the big international companies in front. Besides, no ......