Anti-lean Entrepreneurship--industry analysis and competitive analysis

Absrtact: In the previous chapter, we discussed the market elements, this one we continue to discuss the two other subjects to consider in the analysis of industry Analysis and competition: Elements of competitiveness and environment. In Porter's famous book "Competitive advantage", five kinds of forces are described, which determine a

In the previous chapter, we discussed the market elements, this one we continue to discuss industry analysis and competitive analysis of the other two objects to consider: competitive elements and environmental factors.

In Porter's famous book "Competitive Advantage", it describes five kinds of forces that determine the competitive power of an industry, and when an enterprise wants to enter a new industry, or when an enterprise wants to understand his current situation in the industry, it is more suitable to use the "Porter Five Force model". This is an enterprise analysis of a tool, but also the industry analysis of the "competitive elements", including the user's bargaining power, supplier bargaining power, competition among competitors, alternative threats, potential entrants and the threat of exit.

Competitive elements

User Bargaining Power

The user's bargaining power is inversely proportional to the industry's attractiveness. The less attractive the industry, the stronger the buyer's bargaining power. Companies have to try to highlight their other strengths in order to avoid forced prices and to beat rivals. Buyers have a strong bargaining power in the following situations:

products in the industry accounted for a large proportion, that is, enterprises rely too much on these products, there is no difference in products, indicating a high degree of standardization of products, buyers have a large choice; the more information the purchaser has, the greater the threat to the supplier.

Supplier Bargaining Power

The greater the bargaining power of suppliers, the lower the attractiveness of the industry. Because it allows the supplier to determine the price of other terms. Vendors have strong bargaining power in the following situations:

suppliers are highly concentrated, indicating that a small number of enterprises control the industry's supply of raw materials. There are few substitutes or substitutes. The supply of products is characteristic and the cost of conversion is high.

At the same time, internal employees can also be one of the competitive elements, they can be based on the overall strength of the enterprise to choose whether to be loyal to the company or the industry. "Spring Water Plumbing Duck Prophet", if an enterprise or can attract or even retain more internal staff, then its industry attraction is higher.

Peer Competition

With rivals fierce struggle for the characteristics of the mature industry, its negative impact is often the marketing input upgrade, the market share is unchanged, the impact is indeed only profit. The competitive industry has the following characteristics: There are many competing competitors, low speed growth, high fixed cost and lack of industrial differentiation.

But if in a fast-growing industry, the fierce competition of rivals will make the whole market explode, will appear "win more" situation, such as two "authentic herbal tea" competition will be a Guangdong local beverages, quickly swept the country, quickly swallowed the original carbonated beverages market, and will not drink a group of people also induced into consumers. Now the mobile medical field of the first echelon of several tyrants, and actively promote the user and high-quality medical resources for the competition, will be the entire industry into the "high-speed lane."

Threats to alternatives, threats to potential entrants and returnees

The threat of alternatives comes mainly from a category of competitors or a handful of competitors, and the industry with a large number of substitutes is unattractive. As a result, some companies with extremely high returns on investment earn industry profits, and their alternatives are very low.

As the high threat of new entrants lowers the attractiveness of the industry, the additional capabilities and resources brought by new entrants tend to exacerbate market competition and reduce marginal corporate profits. Even in the early stages of market growth, new entrants can also discourage corporate enthusiasm. Although the oral welcome, but also very difficult to be heartfelt. Whether the new competitor really can enter the market is the key to the market entry barriers, of course, these barriers will change over time, mainly including economies of scale, product differentiation, capital requirements, conversion costs and distribution channels.

Environmental elements

Environmental factors refers to the various factors outside the control of the enterprise or industry, if the enterprise can not maintain the sensitivity to environmental change, the industry will be bleak. Conversely, if the enterprise can take advantage of environmental change, the industry will be very promising. The environmental elements mainly include 5 aspects: technological environment, social environment, political environment, economic environment and legal environment. In the same way, environmental elements are the tools used in enterprise analysis,--pestel, it also raised the impact of the natural environment on a business or industry, such as the government's response to haze and determination, weather factors affect the normal operation of traffic and so on.

Technical Environment

The key issue in the technical environment is whether the emergence of new technologies will affect or replace existing technologies in the industry. Because the technology is not high industry vulnerable to the threat of emerging industries. But it has to be overlooked that sometimes technology can make people feel resistant, such as automatic voice service, which makes people very nostalgic for human services. In addition, we can ask questions such as the technology environment: what technologies do enterprises use in production and operation? How important are these technologies to the business? Which of the above external technologies is critical? Why? Can companies continue to use these external technologies? What are the latest developments in these technologies? Which companies have the latest technical developments? Wait a minute.

Social Environment

Many industries will be affected by the economic environment, such as real estate is sensitive to changes in interest rates, as well as the broad customer base of the industry, the changes in GDP are also very sensitive, when the economy is bad, the industry is depressed. So why is health care rarely affected by the economic environment and become a cyclical and inconspicuous industry? Therefore, we can consider the economic environment generated data changes, but can be based on specific industry analysis, even in the large industry there are many small subdivision of the industry is independent development.

Lifestyle

Changes in individual values are critical to the industry. We develop new products in order to adapt to today's lifestyle. For consumer products, the key question is whether the industry uses current trends for positioning. For example, where is the main motivation for the use of micro-letters by the public? ① support Voice, text, pictures, video, communication more convenient. The new shake, sweep a sweep, to a large extent convenient for the user's life interesting; ② public number, to provide enterprises with micro-marketing platform, compared to micro-bo, this kind of permissive push information and value greater; ③ service plug-ins such as micro-credit payment, Address Book Security assistant and Game Center can be more sticky to users.

Political Environment

A country's social system, the Government's policy, policies, decrees, etc. And, the government's policy has a wide impact on the business behavior, even if the government's many interventions are often indirect, often in the tax rate, interest rate, bank reserve as a lever, the use of fiscal and monetary policy to achieve macroeconomic regulation, as well as the intervention of foreign exchange rate to ensure the international financial and trade order. In assessing the attractiveness of the industry, it is important to judge and predict the long-term and short-term nature of government policy, which should be prepared for the policy of the government to play a long term role, and the short-term policy to react differently depending on its effective time or effective cycle.

Legal Environment

Because the law restricts the market competitiveness of the industry or increases operating costs, the Government and other institutions will also adopt legal norms to influence the industry's attractiveness. Some industries have become less attractive because they have long been affected by environmental and safety regulations.

But we should note that the list of data is important, but that is not the goal. Our aim is to interpret the past and current data and analyze the data in a timely manner. The analysis of the data, it is necessary to make bold predictions, and make plans for the future. Therefore, these data analysis results are a prerequisite for future prediction and planning. Therefore, we can use these 17 indicators, according to the horizontal vertical staggered arrangement, the importance of the ranking, the use of weights to calculate the score of each index, and then add each of the indicators to calculate the scores of the collective judgments of indicators, and then add the total score of all indicators, the total total score, By dividing the total score of each indicator separately, the percentage obtained is the weight of the indicator. Then the overall attractiveness of an industry can be calculated.

Later we can give an example to carry out a specific analysis, but the theoretical study, although boring but very important!