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Industry Rivalry
© Dr Adrian Kuah 2008
Industry Rivalry Is
High If:
• Low concentration
• Diversity of competitors
• Market is in slow growth
• Fixed costs are high
• Extra capacity comes in large increments
• Low differentiation of competing products
• High exit barriers
Industry Structural
Analysis
P o r te r ’s
F iv e
F o r c e s
E x p la n a t io n
I n d u s t r y
S t r u c tu r a l
A n a ly s is
S t r a t e g i e s
A d o p t e d B y
K e y P la y e r s
R iv a lr y
A m o n g
E x is t in g
C o m p e t it
o r s
R i v a l r y a m o n g
e x i s t i n g
c o m p e t i t o r s t a k e s
t h e f a m i l i a r f o r m
o f j o c k e y i n g f o r
p o s i t io n , u s in g
t a c t i c s l i k e p r i c e
c o m p e t i t i o n ,
a d v e r t i s i n g
b a t t l e s , i n c r e a s e d
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