The Five Competitive Forces that Shape Strategy
Competition is often looked at to narrowly.
These are the five competitive forces:
- Rivalry among existing competitors
- Threat of New entrants
- Threat of Substitute products or services
- Bargaining Power of Suppliers
- Bargaining Power of Buyers
If this is the way the competition works, what do you do about it?
You might be much better off to "expand the pie" instead of going into a head to head battle with competition.
The real question is: how is this industry changing?It' s important to understand how the industry is changing and how you can reshape the nature of this industry structure.
Strategy is completely useless unless the results of the strategy process is understand properly.
The number one purpose of strategy is alignment.
The last statement is most important.
" ... maybe they'll make a different choice then the mindless pricewars we see."