What are the factors affecting the intensity of rivalry in the industry in which your company is competing?
A number of structural factors can affect industry rivalry:
- Numerous or equally balanced competitors.
- Slow industry growth.
- High fixed or storage costs.
- Lack of differentiation or switching costs.
- Capacity increased in large increments.
- Diverse competitors.
- High strategic stakes.
- High exit barriers.
How does intensity of rivalry affect competition?
The intensity of rivalry among competitors in an industry refers to the extent to which firms within an industry put pressure on one another and limit each other’s profit potential. High intensity of competitive rivalry can make an industry more competitive and thus decrease profit potential for the existing firms.
Which of the following are important factors that determine the intensity of rivalry among established companies within an industry?
Many factors influence the intensity of rivalry among firms in an industry. In general the number and size of the rival firms, demand growth of industry product or service, amount of fixed costs and exit barriers are the forces behind the intensity of rivalry in an industry.
What are the main factors that affect the amount of business competition?
From a microeconomics perspective, competition can be influenced by five basic factors: product features, the number of sellers, barriers to entry, information availability, and location.
What are the 6 factors of competitive advantage?
The six factors of competitive advantage are quality, price, location, selection, service and speed/turnaround.
What are the factors affecting competitiveness?
Factors affecting international competitiveness
- Relative inflation rates.
- Exchange rates.
- Real exchange rate.
- Labour productivity.
- Education.
- Institutional factors – Do countries have sound monetary policy and efficient tax collection networks?
- Level of crime and corruption.
- Financial system – Levels of access to finance.
What is competitiveness and productivity?
In the context of intemationalisation, competitiveness is a synthesis of comparative advantage and competitive efficiency. Productivity helps firms, industries, and nations achieve sustainable competitive advantage. Productivity is integral to concepts of comparative advantage and competitive efficiency.
How does inflation affect competitiveness?
Firms generally prefer inflation to be low and stable. If inflation rises above 3 or 4%, firms may see a rise in costs and uncertainty. Inflation can also cause firms problems of rising costs, falling profitability, and a decline in international competitiveness.
How can competitiveness be increased?
Five Essential Strategies To Enhance Competitiveness
- Focus on Core Competencies. Today, companies in every industry are racing to add greater value than their competitors.
- Attract and Retain Necessary Talent.
- Become More Customer Centric.
- Drive Down Costs.
- Expand Internationally.
What are the 12 pillars of competitiveness?
These 12 pillars of competitiveness are:
- Institutional environment.
- Infrastructures.
- Macroeconomic environment.
- Health and primary education.
- Higher education and training.
- Good market efficiency.
- Labour market efficiency.
- Financial market development.
How do you maintain competitiveness?
Ten ways to keep ahead of the competition
- Know the competition. Find out who your competitors are, what they are offering, and what their strengths and weaknesses are.
- Know your customers.
- Differentiate.
- Step up your marketing.
- Update your image.
- Look after your existing customers.
- Target new markets.
- Expand your offer.
What are examples of competitive advantages?
Examples of Competitive Advantage
- Access to natural resources that are restricted from competitors.
- Highly skilled labor.
- A unique geographic location.
- Access to new or proprietary technology. Like all assets, intangible assets.
- Ability to manufacture products at the lowest cost.
- Brand image recognition.
What are the 5 areas of competitive advantage?
5 areas to drive competitive advantage
- MARKETING. How can your marketing team make claims about your product and the ability to deliver it without knowing the capabilities of your supply chain?
- FINANCE. Here are two departments which ought to be so close their husbands and wives start to get jealous.
- HUMAN RESOURCES.
- LEGAL.
- CUSTOMER SERVICE.
What are examples of advantages?
The definition of advantage means anything that provides a more favorable position, greater opportunity or a favorable outcome. An example of an advantage is when a football team plays a game in their home stadium.
What is disadvantage example?
The definition of a disadvantage is an unfavorable situation or something that puts someone in an unfavorable situation. An example of a disadvantage is a baseball player not being able to play. An example of a disadvantage is a baseball team’s star player having to sit out because of an injury.
What is difference between advantage and benefit?
When used as nouns, advantage means any condition, circumstance, opportunity or means, particularly favorable to success, or to any desired end, whereas benefit means an advantage.
What does advantage and disadvantage mean?
noun. absence or deprivation of advantage or equality. the state or an instance of being in an unfavorable circumstance or condition: to be at a disadvantage. something that puts one in an unfavorable position or condition: His bad temper is a disadvantage.
What is another word for advantage and disadvantage?
What is another word for advantages and disadvantages?
| pros and cons | fors and againsts |
|---|---|
| boon and bane | costs and benefits |
What is difference between advantages and disadvantages?
is that disadvantage is a weakness or undesirable characteristic; a con while advantage is any condition, circumstance, opportunity or means, particularly favorable to success, or to any desired end.
What is an disadvantage?
(Entry 1 of 2) 1 : loss or damage especially to reputation, credit, or finances : detriment the deal worked to their disadvantage. 2a : an unfavorable, inferior, or prejudicial condition we were at a disadvantage.
What are the disadvantages of models?
Disadvantages of modelling and simulation Mistakes may be made in the programming or rules of the simulation or model. The cost of a simulation model can be high. The cost of running several different simulations may be high. Time may be needed to make sense of the results.
What is the advantages and disadvantages of information technology?
Communication – with help of information technologies the instant messaging, emails, voice and video calls becomes quicker, cheaper and much efficient. Globalization and cultural gap – by implementing information systems we can bring down the linguistic, geographical and some cultural boundaries.
What are the pros and cons for biomass?
Pros and cons of biomass
| Pros of biomass | Cons of biomass |
|---|---|
| Renewable | High costs |
| Waste reduction | Space requirements |
| Reliability | Some adverse environmental impact |
What are the disadvantages and advantages of biomass?
Is less expensive than fossil fuels. While fossil fuel production requires a heavy outlay of capital, such as oil drills, gas pipelines and fuel collection, biomass technology is much cheaper. Manufacturers and producers are able to generate higher profits from a lower output.
What is the benefit of using biomass?
The benefit of biomass energy is that biomass is renewable source of energy and it cannot be depleted. Biomass mostly derived from plants, that means as long as plants are going to be on this planet, biomass will be available as renewable energy source.
Why should we use biomass?
Correctly managed, biomass is a sustainable fuel that can deliver a significant reduction in net carbon emissions when compared with fossil fuels. Biomass is a “carbon lean” fuel producing a fraction of the Carbon emissions of fossil fuels.