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    Cheat Sheet (Organizational Analysis)

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    AbdulMoeedMalik
    The document provides an analysis of the key factors of organizational competitiveness: competitive rivalry, threat of new entrants, threat of substitution, supplier power, and buyer power. For each factor, it lists several questions marketers should consider to evaluate the competitive landscape and their organization's position within it, such as the number of competitors/substitutes/suppliers, barriers to entry, customer loyalty, product differentiation, and buyer price sensitivity and information. The analysis aims to help marketers assess strengths, weaknesses and risks across these five dimensions.

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    Cheat Sheet (Organizational Analysis)

    Uploaded by

    AbdulMoeedMalik
    104 views2 pages
    The document provides an analysis of the key factors of organizational competitiveness: competitive rivalry, threat of new entrants, threat of substitution, supplier power, and buyer power. For each factor, it lists several questions marketers should consider to evaluate the competitive landscape and their organization's position within it, such as the number of competitors/substitutes/suppliers, barriers to entry, customer loyalty, product differentiation, and buyer price sensitivity and information. The analysis aims to help marketers assess strengths, weaknesses and risks across these five dimensions.

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    Cheat Sheet (Organizational Analysis) (1)

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    The document provides an analysis of the key factors of organizational competitiveness: competitive rivalry, threat of new entrants, threat of substitution, supplier power, and buyer power. For each factor, it lists several questions marketers should consider to evaluate the competitive landscape and their organization's position within it, such as the number of competitors/substitutes/suppliers, barriers to entry, customer loyalty, product differentiation, and buyer price sensitivity and information. The analysis aims to help marketers assess strengths, weaknesses and risks across these five dimensions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    104 views2 pages

    Cheat Sheet (Organizational Analysis)

    Uploaded by

    AbdulMoeedMalik
    The document provides an analysis of the key factors of organizational competitiveness: competitive rivalry, threat of new entrants, threat of substitution, supplier power, and buyer power. For each factor, it lists several questions marketers should consider to evaluate the competitive landscape and their organization's position within it, such as the number of competitors/substitutes/suppliers, barriers to entry, customer loyalty, product differentiation, and buyer price sensitivity and information. The analysis aims to help marketers assess strengths, weaknesses and risks across these five dimensions.

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    © All Rights Reserved
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    of 2

    Cheat Sheet

    Organizational Analysis
    Competitive Rivalry:
    Clearly a key factor in competitive intensity will be competitive rivalry. So what do marketers
    need to consider?

     How many competitors do you have?


     Do you have a solid competitive strategy in place?
     Are you being innovative in order to give you the competitive advantage?
     Do your competitors have more advertising resources?
     Is there a difference in quality?
     Are yours, or their customers loyal?

    Threat of New Entrants:


    If an industry is perceived as attractive then of course new entrants are highly likely to appear. If
    too many new entrants appear then profitability across the industry will be lowered and the
    attractiveness will decline. The threat of new entrants can be lowered or even blocked by the
    largest companies that have somewhat of a monopoly over the industry. Marketers will need to
    consider:

     Are there many entry barriers? High entry and low exit barriers makes for an attractive
    industry. Entry barriers may include rights, patents, technology protection etc.
     Do you have customer loyalty?
     Do you have specialist knowledge that can be used to differentiate you?
     Is there evidence of economies of scale in play in your industry?
     Is there any Government policy in place to either encourage or discourage new entrants?

    Threat of Substitution:
    Customers may choose to substitute your product or service for another. This is not the same as
    switching to a different company to use the same product but switching products entirely. For
    example switching from a regular phone to a smartphone, or from a sugary snack to a healthy
    alternative snack. The more products that continue to appear, the higher the chances your
    customers will be drawn to an alternative from their usual choice. How can marketers confront
    this?

     How many substitute products to your own are there?


     Is there a perceived level of differentiation?
     Is there a cost to the buyer for switching?
     How easy is it for the buyer to switch?
    Supplier Power:
    We all have suppliers, whether it is raw materials, knowledge support or physical staff labour.
    Marketers know that a great deal of research and consultation will be done in order to attain the
    best suppliers at the best price. But what if there is very little choice of suppliers? The fewer
    suppliers there are, the more power they have over you and the prices they charge. Marketers
    should consider:

     How many suppliers are available to you?


     What are the sizes of the suppliers available to you?
     What are the costs to both you and them for switching suppliers?
     What is the strength of your distribution channel?

    Buyer Power:
    When the buyers themselves have power they can apply pressure to companies, in particular
    pressure to lower their prices. If the buyer has many choices of products and companies then
    their power is high. If buyers decide to join together so that a large portion of the market share
    is putting pressure on companies then they again have high power. How can marketers prepare
    for this?

     How many buyers do you have?


     How price sensitive are your buyers?
     What information is available to you on your buyers?
     What differentiates you from your competitors?

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