Industry Analysis
What is an industry?
According to the book of Bruce R. Barringer (2016) Industry is producing a similar product or service that is done by a several firms that have same goals.
What is industry analysis?
To know the potential of an industry the entrepreneur have to do a business research that is called industry analysis. This analysis involves This is one of impotant part that entrepreneur needs to do before starting the business
Is it important for a new firm to analyze the industry in which it may choose to compete? Why?
Yes it is important, because it can prevent failure and risk and also understanding the potential of the industry, and based on the book said It is useful for a new venture to think about its position at both the company level and the product or service level. Also we can learn about the competitor landscape, we can learn to prepare for next business competition. And it is really important to understanding the industry the firm plan to enter.
What are the five forces that determine an industry’s profitability?
Porter five forces is a method that helps analysis and identifications for forming a business pattern and it can be used to assess the attractiveness of an industry or a specific position within an industry by determining the level of threat to industry profitability for each of the forces .
What are the six major sources of barriers to entry that can restrict a firm’s entry into a market?
- Economies of scale.
- Product differentiation.
- Capital requirements.
- Switching costs.
- Access to channels of distribution.
- Government policy.
How does rivalry among existing firms have the potential to suppress an industry’s profitability?
According to Porter’s Intensity of Rivalry Definition, each firms have goals to make profits and It’s refers to firms that put pressure and limit other’s profits potential, and it’s all make the intense of rivalry getting more competitive and try to decreasing each other’s profits potential.
What are the characteristics of an emerging industry? What is the primary opportunity
New industry which the standart is still on process of delevoping. Or it can be called the pioneer and A first-mover and it’s advantage is an occasionally impossible bit of leeway picked up by the principal organization to set up a noteworthy situation in another market. For the new firms the risk and the barriers to entry are usually still on low point, and lack of the rivalry and competitive Examples of current emerging industries include artificial intelligence (AI), robotics, virtual reality, self-driving cars, and biotechnology.
What are the characteristics of a fragmented industry? What is the primary opportunity ?
It’s characterized by equal size a large number of firms, The primary opportunity for start-ups in fragmented industries is to consolidate the industry and establish industry leadership as a result of doing so. The most common way to do this is through a geographic rollup strategy, in which one firm starts acquiring similar firms that are located in different geographic areas.15 This is an often observed path for growth for businesses such as auto repair shops and beauty salons. It is difficult for them to generate additional income in a single location, so they grow by expanding into new geographic areas via either organic growth or by acquiring similar firms. examples of fragmented industry include clothing retailers, businesses selling furniture, agriculture, plant nurseries and landscaping
What are the characteristics of a mature industry? What is the primary opportunity ?
This industry have regular customer and they don’t have to find new customer because they have more old customer than the new one. But they have limited product innovation. The automotive, petroleum, and tobacco industries are examples of mature industry.
What are the examples of declining industry? And why?
Rented DVD’s and video games. Because people don’t use that kind of products anymore, the definition of declining industry is part of industry that experiencing reduction demand that means the products are no longer on the market due to low demand.
What is a global industry?
Global industries is a part of industries that entering the international market, many start-ups enter global industries and from day one try to appeal to international rather than just domestic markets. The firm that entering global industry are usually growing into multinational organization.
What are the two most common strategies pursued by firms in global industries?
- multidomestic strategy : is about delegating management and decision-making authority to local host-country business units
- global strategy : Centralized, top-down management control and decision-making authority are key components of the global strategy
(https://bizfluent.com/info-8219768-multidomestic-vs-global-strategic-plans.html)
What is the purpose of competitor analysis?
For a firm it helps to learning about the positions of its major competitors and the opportunities that are available to obtain a competitive advantage in one or more areas. The firm can be prepared by knowing the competitor‘s potential
What are the differences among direct competitors, indirect competitors, and future competitors?
Direct competitor : whose business and target market are intersect with our firm, we can say that they do sell the same product as our firm
indirect competitor : whose business are more specific than our business
future competitor : existing business competitor that aren’t in the market place yet, but could be competitor in the futre when they enter at any time.
Why is it important for firms to collect intelligence about their competitors?
Competitors intelligence sources are used by the firm to learning and understanding their competitor. If we know what our competitor’s doing we can be prepared our firm tobe more competitive.
What are three sources of competitive intelligence that entrepreneurial firms should feel comfortable using to better understand their competitors?
- Hipmunk
- element bars
- benchprep
What is the purpose of completing a competitive analysis grid?
It will make it easier for our firm to organizing and collecting the information about our competitors, so our firm can learn, identify,and analysing well. If we know everything about our competitor we will comfortable with what we are doing because we can see and adjust the potential between our firm and the competitor’s
Opinion :
Setelah membaca chapter 5 saya berpendapat bahwa industry analysis merupakan hal yang penting sebelum kita membangun sebuah bisnis karena sebelum memasuki sebuah industri kita harus mengetahui dan memahami lingkungan seperti apa yang akan kita hadapi, belum lagi rival dan persaingan yang ketat. Kita juga harus tetap bersiaga dan harus mempelajari rencana-rencana dan potensial yang ada pada perusahan saingan. Bahkan penting sekali untuk mengumpulkan informasi dan data-data untuk mempelajari perusahaan lain agar perusahaan kita dapat bersaing dengan baik, maka dari itu perlu persiapan yang matang bagi suatu perusahaan baru untuk dapat berjalan disuatu industri.
reference :
Bruce R. Barringer & R. Duane Ireland-Entrepreneurship successfully launching new ventures-Prentice Hall (2016)
https://bizfluent.com/info-8219768-multidomestic-vs-global-strategic-plans.html