Pritam Deuskar Wealthyvia - Competitive Advantage

2. Pritam Deuskar Wealthyvia - Micheal Porter model factors definitely help us in analyzing competitive advantage of a firm . In business analysis one must see how much strength company has got from various angles Here is an explanation of the 7 drivers of market attractiveness currently used in the Porter analysis model. According to Pritam Deuskar Wealthyvia, it is important that the analyst adopts an external perspective when carrying out Porter analysis. Look at the market objectively, just as if you were a potential new entrant evaluating it from the outside.

3. MARKET ATTRACTIVENESS DRIVERS 1. Market Growth Market growth is a driver of market attractiveness. Pritam Deuskar says, "Fast-growing markets are more attractive than mature or declining markets." For example input 5 if the market growth is everage, or 1-3 if the market is growing at more than 20% per year.

4. 2. Competitor Rivalry A certain amount of competitor rivalry is present in most markets. Don’t naturally assume that the market is necessarily higher than average. Input 9 if you believe that your competitors are adopting an almost irrational level of rivalry activity-severe price competition, advertising wars. If you believe rivalry to be average, input 5.

5. 3. Customer Power  Is high when there is:  High price elasticity (if price goes up, they buy less)  High buyer concentration (few of them)  High significance of purchases to buyers  Lack of differentiation between suppliers  Low switching costs from one suppliers to other suppliers  Quality is relatively unimportant to buyers  Buyers operate on low profit margins - need costs reduced  Buyers have good information about suppliers cost structures  Threat of backward integration – buyer enters your business

6. 4. Threat of Substitutes  Is high when there is:  New technology  New materials  New processes 5. Threat of New Entrants  Is high when:  There are low economies of scale  There is little product differentiation  There are low capital requirements  Customer switching costs are low  There is easy access to distribution  Government policy encourages new entrants

7. 6. Supplier Power Is high when:  There is a high concentration of suppliers (few of them)  There is a lack of substitutes/alternatives  It is expensive to switch suppliers  There is a threat of forward integration – supplier enters your business  Your industry is not that important to suppliers 7. Regulatory Pressure Is high when there are Government or other regulatory bodies (legitimate or otherwise) act to make the market less attractive.

8. RELATIVE ADVANTAGE DRIVERS Here is a description of the two drivers used to establish a product’s relative competitive advantage compared to competitor’s products. 8. Market Share In a stable market shares measure the firm’s relative competitive advantage or disadvantage. If anybody is interested in knowing about market shares, then visit the wealthy via site. Here you will get the right information about market shares.

9. 9. Virtuality Virtuality occurs when economies of scale become negative. That is, when the external supplier markets become more efficient than the organization itself and the company can procure and serve customers more efficiently using external sources. (e.g. outsourcing). Organizations tend to improve incrementally, whilst some supplier markets are improving exponentially. Virtual organizations tend to monitor supplier markets and outsource to exploit savings in both invested assets and expenses. Want More Information about drivers of market attractiveness, Then visit Pritam Deuskar’swealthyvia Site.