12
Powerful buyers
Customers likewise can force down prices, demand higher quality or more
services, and play competitors off against each other.
Substitute products
By
placing
a
ceiling
on
the
prices
it
can
charge,
substitute
products
or
services
limit
the potential of an
industry.
Unless it can
upgrade
the quality of the product
or differentiate in somehow, the industry will suffer in earnings and possibly to
growth.
Jockeying for position
Rivalry
among
existing
competitors
takes
the
familiar
form of
jockeying
for
position, using tactics like price competition, product introduction, and
advertising slugfests.
2.2.1.3.
Operating Environment
Competitive analysis, consist of
market share, breadth of product
line,
effectiveness of sales distribution, proprietary and key-account advantages, price
competitiveness, advertising and promotion effectiveness, financial position,
customer profile, general image, community reputation.
Customer profiles
The
most
vulnerable
result
of
analyzing the operating environment is the
understanding of a
firm’s customers
that this provides. Developing a profile of a
firm’s present and prospective customers improve the ability of its IM3’s manager
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