How many competitors do you have?

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The best way to clarify the impact of mesoenvironment factors is to use the analysis method invented by the American economist Mike Porter – the 5 forces of competition model.

The 5 Forces of Competition model has five blocks. Each of them represents a specific way in which the competitive market influences the company.

The main block is the competitive environment . In guangdong mobile phone numbers database it, we can find all the market participants that interest us, that is, our company and competitor companies.

In order to study this factor, it is necessary to identify the following in the competitive environment:

Which players can be called the main ones and what are their shares?


Strengths and weaknesses of players.

Data on how much competitors spend on certain areas of the company.

The second block is the threat of new players appearing .

It can be considered from these positions:

barriers to entry into the market, such as unobtained licenses, non-compliance with legal regulations, or competitors' patents already issued;

starting amount for entering the market;

funds that will be spent on product differentiation;

approaches to different distribution channels;

practices of competing companies. It should be taken into account that the longer they are on the market, the more difficult it is for newcomers to appear;

barriers to completing sales, such as agreements with suppliers or customers.

The third block is devoted to substitute goods . It will be about the products of companies that cannot be called direct competitors, but with flexible demand they will become dangerous.

This factor can be assessed by the following parameters:

How well do customers feel about your products?

Is there a big difference in the cost of your company's product and the product that replaces it?

How professional are buyers. The more they understand the topic, the less influence the parameter has.

What is the cost of switching to a substitute product?

The next block is the power of buyers in the market . In it, we will consider the ability of consumers to set the conditions for interaction with the company.

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This factor is represented by the following parameters:

the number of consumers in the goods market - the fewer there are, the more influence they can have;

the scale of purchases made by one buyer - the larger it is, the greater the influence;

Are consumers consolidating?

How big is the selection of goods?

The last block is the power of suppliers in the market .

In order to evaluate it, you need to look at the following parameters:

difficulty in switching to another supplier;

the scale of purchasing products from one supplier;

To what extent does the quality of purchased raw materials affect the company's sales?

And again we will take the rating scale from -3 to 3. Let us recall that minus means negative influence, 0 - the factor has no effect at all, and positive values ​​indicate a favorable impact on the company. The spread from one to three indicates the strength of the influence, both good and bad. That is, -3 - the factor has an exclusively negative effect.