2. Situation (1400 words) Industry analysis – Change in competition structure in

2. Situation (1400 words)
Industry analysis
– Change in competition structure inc. new entrants & substitutes.
– Change in supply structure.
– Change in demand structure.
– Conduct deep desk research collecting both quantitative and qualitative data on industry force trends. Conclude whether the industry environment is increasingly volatile, uncertain, complex, and ambiguous.
Do this industry analyses by doing a analyses about:
– Internal
– – by porters five: Intensity of rivalry (•  The market share (%) of the focal firm.
* •  The market share (%) of the top 10 competitors.
* •  The sum of the market share of the top 10.
* •  The total number of competitors.
* •  Growth rate (%) YoY of the market.
* •  The source of business growth; differentiation or cost leadership.
* Supplier power
 The scarcity of key human resources (skilled employees) and the existence of labour unions and the rate (%) of unionisation.
 The scarcity of raw materials or key components.
 The number of suppliers of raw materials or key components and their market shares.
 The size of suppliers in relation to firm size.
Customer power
 The number of customers.
 The size of customers in relation to firm size.
 The existence and development of customer consortia.
 The existence and development of consumer protection regulation.
Threat of new entrants
 The average rate (%) of returns in the industry.
 Developments in disruptive technologies and business models.
 The existence of under- served customer segments.
Threat of substitutes
 Price-quality attractiveness of value propositions in adjacent markets.
 Developments in disruptive technologies and business models in adjacent markets delivering value propositions at lower cost or lower complexity.
– External analyses on the construction analyses based on PESTLE