Introduction
Competitiveness is one of the leading key elements in creating, developing, and maintaining a successful business for long-term prospects. Therefore, many firms today have a fairly wide range of opportunities to evaluate their abilities and strengths among “opponents” in a particular market or industry. For example, with the help of Porter’s five forces and a deep, comprehensive analysis of the data obtained, a competent specialist will form a forecast for the company’s future, its possible well-being, and success. Discussion of the rivalry portion and evaluating the intensity of the rivalry are the key ideas to be considered in this paper.
The Rivalry Portion
It is worth noting that a competent, high-quality, and comprehensive study of the level of rivalry is possible with the help of Porter’s five forces. Thus, Porter’s concepts include several aspects, such as buyers, suppliers, existing competitors, new competitors, substitute products (Martin, 2019). For instance, buyers are probably the most important link in any business. High brand awareness, positive customer feedback, and understanding of customer need – all these elements affect the maintenance of the firm’s projects. Suppliers also play a significant role in terms of building competitiveness. Thus, a wide variety of suppliers of goods is equated with a high rate of increasing the positive advantages of the company.
In addition, the analysis of current competitors will allow the company to understand what awaits it in the future with planned development. On the contrary, studying potential competitors gives an understanding of what will happen to a niche and a specific business in that particular case if various force majeure and incidents appear. As for substitute products, it is important to consider that there is an opportunity to offer other products to customers in this case. For example, when sales of one product grow, then sales of another one way or another fall – this is logical. Accordingly, each product has its substitute, which should be considered.
Evaluating the Intensity
To date, there are many methods, methods, and strategies for assessing the intensity of rivalry based on the analysis of numerical data. Hence, the following trends can be clearly traced on the presented numerical data. Firstly, one of the most significant aspects affecting the provision and maintenance of its competitiveness, strength, and advantages among “rivals” is high brand awareness. Indeed, the company needs to continue to maintain “warm” relations with customers to achieve its goals and demonstrate sustainable competitive abilities among “rivals” (Rivas, 2019). Undoubtedly, people trust the quality of their products and appreciate them. Undoubtedly, those buyers who were satisfied with the quality of a particular product will turn to the same company again that produced this product.
Secondly, the average indicator of the “switchability” of costs is set in this case. In a way, this is the achievement of the “golden mean,” balance and equilibrium between consumers and producers. Hence, based on this provision, the availability of products remains at a relatively unchanged level. At the same time, the supplier of goods himself does not “go to zero” and is unlikely to go bankrupt.
Thirdly, another key aspect affecting the company’s competitive advantages is a fairly low percentage of goods sold at discounts. Accordingly, unlike “unclaimed” goods, high-margin goods sell well and provide the company financially. Fourth, the difference in pricing between competitors is not so different from analogs, which means that the criteria for the availability of goods are brought to a higher level. Consequently, referring to the indicated figures, one can conclude that the company has provided high customer activity results and stayed afloat among competitors, at least for a long time.
Conclusion
In conclusion, competitiveness is the most important criterion for increasing the market share and forming the company’s leadership in the industry. Hence, for a more detailed and comprehensive analysis of the criteria of rivalry, it is necessary to be guided by Porter’s five forces – this is a universal and qualitative method. In addition, based on the obtained digital values, it should be noted that the company has high competitive advantages, stability, and reliability in a certain industry.
References
Martin, M. (2019). How Porter’s five forces can help small businesses analyze the competition. Business News Daily. Web.
Rivas, G. (2019). Business competitiveness: How to make the company more competitive?. GB Advisors. Web.