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2.6 - Coggle Diagram

- - - - The industry must not be defined too broadly (many actors) or narrowly (Risks excluding important competitors)
      - The broader industry value chain must be considered
      - Industries must be defined in different levels (different geographies, markets and segments)
  - - - Market Size
      - Number of potential customers
- - - - The degree of concentrations, the market share of each competitor.
      - Higher competition might indicate reduced profits
      - Factors influencing competitive rivalry
        
        The rate of growth of the industry 'CAGR'
        
        Fixed costs of the sector
        
        High barriers to exit
        
        Many equal or balanced competitors
        
        Lack of differentiation or switching costs
    - - The easier for an organisation to enter a sector, the higher the competition
      - Barriers to entry
        
        Economies of scale
        
        Capital requirements
        
        Switching costs
        
        Retaliation from established players
        
        Access to distribution channels
        
        Legislations
    - - Products or services that can meet similar customer needs
      - Customers switch to substitutes in case of price increase
      - An important factor here is the Price/performance ratio
    - - The bargaining powers of buyers
      - Bargaining for higher quality and more services
      - Factors in favor of the buyers
        
        Low switching costs
        
        The product is standard and undifferentiated
      - Concentration of buyers (Few large buyers account for most sales)
    - - The bargaining power of the suppliers
      - Factors in favor of the suppliers
        
        There are few substitutes
        
        High switching costs
        
        Products are very differentiated
- - - - PESTLE
    - - Porter's Five Forces
    - - Important to pay attention to the SWOT table in the lecture (Impact rating system)