Chapter 9: Dealing with competition
Competitive forces, according to Michael E. Porter, are five key factors that determine the attractiveness of a market: threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers, and rivalry among existing competitors. The Chapter then explains how to identify the competitors and analyze their strategies, objectives, strengths, and weaknesses. In order to gain an advantage, companies should consider the market's competitive landscape and position themselves accordingly. Four key strategies are offered: market leader, market challenger, market follower, and niche specialist. The Chapter then provides specific examples of how companies can apply these strategies.