Please enable JavaScript.
Coggle requires JavaScript to display documents.
Analysing the competition in an industry (MESO) (What is an industry? (Q -…
Analysing the competition in an industry (MESO)
Industry Characteristics
Conduct
Value capture (ROS)
Best
Performance
ROCE (ROSxAUR)
What can be achieved?
Structure
Value creation (AUR)
Of industry
Different
Industry
Performance
What is an industry?
Selling goods/services
Same
Substitute
same or substitute
Group of companies
Q- what are they providing?
Q - is competition
Local
National
International
CONTEXT IMPORTANT
Industries evolve!
Business
Multiple industries
Samsung
J&J
5 steps - analyse industry
Look at geographic scope
Of industry
What competition?
Single industry analysis
each group same products
at the right geographic level
Which groups of products
Belong to same industry
Identify industries
Products
Where they are offered
Performance
Compare using
ROCE
As Tax excluded
Examples affecting performance
Some pay higher taxes
Some are safer investments
Competition
Define
Strategic decisons
Influence each other
Affect each other
Classification
SIC (UK)
Industry
Class
Division
Subclass
Section
NACE (EU)
SIC/NAICS (US)
Market shares
% total sales in 1Y
Shows size of company
Categorise industry type
n-firm concentration
Higher number
More concentrated
More competitors
Controlled by top 4/5/6
% Marketshare of top 4/5/6
Remember LOCATION!
Herfindahl Index