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By which of the following the study of competitive analysis of market can be done?
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By which of the following the study of competitive analysis of market ...
Competitive Analysis of Market


Competitive analysis is the process of identifying and analyzing the strengths and weaknesses of competitors within the market. It helps businesses to understand their position in the market and identify opportunities for growth and improvement. There are several ways to conduct a competitive analysis of the market:


1. SWOT Analysis


A SWOT analysis is a useful tool for analyzing a company's strengths, weaknesses, opportunities, and threats. It can help businesses to identify areas where they excel and areas where they need to improve. This analysis can be done by:



  • Identifying the company's strengths and weaknesses

  • Identifying the opportunities and threats in the market

  • Comparing the company's strengths and weaknesses to those of its competitors



2. Porter's Five Forces Analysis


Porter's Five Forces analysis is a framework for analyzing the competitive forces in the market. It helps businesses to understand the intensity of competition in the market and identify potential threats and opportunities. This analysis can be done by:



  • Identifying the five forces that shape competition in the market - threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products or services, and rivalry among existing competitors

  • Assessing the strength of each of the five forces

  • Identifying the key drivers of each force and how they impact the market



3. Market Share Analysis


Market share analysis is the process of analyzing the market share of a company and its competitors. It helps businesses to understand their position in the market and identify opportunities for growth. This analysis can be done by:



  • Identifying the market share of each of the competitors in the market

  • Comparing the market share of the company to the market share of its competitors

  • Identifying the reasons for differences in market share



4. Customer Analysis


Customer analysis is the process of analyzing the behavior, preferences, and needs of customers in the market. It helps businesses to understand their customers and identify opportunities for growth. This analysis can be done by:



  • Identifying the target customers of the company

  • Identifying the preferences and needs of the target customers

  • Comparing the behavior of the target customers to the behavior of the customers of the competitors



By using one or more of these methods, businesses can gain a better understanding of their position in the market and identify opportunities for growth and improvement.
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Direction: Read the following passage and answer the questions that follows:Market structure is best defined as the organisational and other characteristics of a market. We focus on those characteristics which affect the nature of competition and pricing – but it is important not to place too much emphasis simply on the market share of the existing firms in an industry.Key Summary on Market StructuresTraditionally, the most important features of market structure are: The number of firms (including the scale and extent of foreign competition) The market share of the largest firms (measured by the concentration ratio) The nature of costs (including the potential for firms to exploit economies of scale and also the presence of sunk costs which affects market contestability in the long term) The degree to which the industry is vertically integrated-vertical integration explains the process by which different stages in production and distribution of a product are under the ownership and control of a single enterprise. A good example of vertical integration is the oil industry, where the major oil companies own the rights to extract from oil fields, they run a fleet of tankers, operate refineries and have control of sales at their own filling stations. The extent of product differentiation (which affects cross-price elasticity of deman d) The structure of buyers in the industry (including the possibility of monopsony power) The turnover of customers (sometimes known as "market churn") i.e. how many customers are prepared to switch their supplier over a given time period when market conditions change. The rate of customer churn is affected by the degree of consumer or brand loyalty and the influence of persuasive advertising and marketing. Q. In which market, there is the highest market churn?

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By which of the following the study of competitive analysis of market can be done?
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By which of the following the study of competitive analysis of market can be done? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about By which of the following the study of competitive analysis of market can be done? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for By which of the following the study of competitive analysis of market can be done?.
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