Competitive Environment Analysis

Competitive Environment Analysis explains the structure, participants and forces that affect the competitive intensity and profitability of an industry or market. It is a useful tool to complement a SWOT analysis and to assess the attractiveness of a potential business diversification.

Five Forces Model

The best-known model for analysing a competitive environment is Michael Porter's Five Forces model. Porter classifies the five forces or "rules of competition" as:

1. Threat of new entrants
2. Bargaining power of suppliers
3. Bargaining power of buyers
4. Threat of substitute products or services
5. Rivalry among existing competitors.

The analyst has to measure the individual and overall strength of the five forces; then answer the questions: how attractive is the industry/market? How can we compete?

A Competitive Environment Analysis can be very useful provided accurate information is used and the analysis is objective. A thorough analysis may require more research analyst resource than the Competitive Intelligence team can spare.

We Can Analyse Your Competitive Environment

Intelligentsia is expert in Competitive Environment Analysis. We work closely with clients' competitive strategy teams, to either refresh existing analyses as competitive forces change or to create the analysis to begin the process.

The Benefits of Outsourcing

Outsourcing a competitive environment analysis is cost-effective. You receive a well researched piece of analysis and can, if you wish, deploy the analysis on other priorities in the business.

Learn More

To learn more about Intelligentsia's Competitive Environment Analysis service and how it is helping clients' strategic planning - click the above link.