Degree of competition from existing competitors

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Describe the business environment in the industry, and the business strategy chosen by your company and the competitor. Consider the degree of competition from existing competitors, potential entrants and substitute products. Assess the industry's power over customers (for example, can they raise prices?) and over suppliers (are they dependent on a single supplier, or could they easily switch suppliers?). What are the major trends in the industry? How important is technology? Regulation? With regard to business strategy, you want to identify key success factors and business risks, and to assess the company's ability to create a sustainable competitive advantage. (What must the company do right to succeed? Has it chosen a low cost leadership or a product differentiation strategy?).

Reference no: EM13764453

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