Forms and intensity of competition

This is one of the main characteristics of the industry and the competitive situation, without the analysis of which it is impossible to develop a full-fledged strategy.

Despite the different intensity of competition in different industries, the competition itself is approximately the same, which allows a common approach for its analysis. Harvard Business School professor Michael Porter believes that there are usually five types, or factors of competition, in the industry:

Competition between industry participants; Threat from new competitors in the industry; Competition from manufacturers of substitute goods from other industries; Competitive pressure of suppliers caused by the need to interact with them and obligations to them; Competitive pressure of consumers caused by the need to interact with them and obligations to them.