Xyz Yjtkutmaa Ki Choot Essay

1813 Words Jul 29th, 2015 8 Pages
Industry, Competition and
Strategy

Industry
• Number of Sellers
• Degree of differentiation

Pure Monopoly
• Only one Provider
Unregulated monopoly
Regulated monopoly

Oligopoly
• Small no. of Firms Providing Service
• Pure Oligopoly ( Less/ No Differentiated)- Steel
• Differentiated Oligopoly ( More Differentiated)Camera, Overhead projectors

Monopolistic Competition
• Many Competitors
• Ability of differentiate offering is high
- Hotels

Pure Competition
• Many Competitors
• Similar Offering
• Scope and basis for Differentiation is low
- Cereals, Cigarette, Tea, Biscuit

Drivers of Industry’s Competitive Structure







Entry Barrier
Mobility Barrier
Exit Barrier
Cost Structure
Degree
…show more content…
of players.
Demand / Supply
Market Share
(2)Market Conduct
(actions)
Strategies
Reactive/ Proactive

Intra industry competition All the components of five force model have impact on these three levels of intra-industry competition (3)Market
Performance
(financial)

Debasis Pradhan, XLRI, India

Threat of Entrants

Height of entry and exit barriers

Debasis Pradhan, XLRI, India

Entry Barrier







Capital Requirements
Economies of Scale
Patents
Licensing Requirement
Location
Intermediaries

Debasis Pradhan, XLRI, India

Exit Barrier
• Legal and Moral Obligation to Customers,
Creditors, Employee
• Govt. Restrictions
• Low Asset Salvage Value
• Lack of Better Opportunities
• High Degree of Vertical Integration

Debasis Pradhan, XLRI, India

Entry barriers
 Govt.

policy related (Coke, FDI in Retail )

 Technology related (Steel, Thermal, Aluminium)

 Marketing related ( Distribution, Contacts,
Differentiation )
Ex: -Sony faced in India from BPL & Videocon but could overcome the entry barrier;
-Castrol and Toyota also faced it

Cost advantages : Not always related to the size of company e.g. contacts or knowledge that larger companies do not have
(Learning curve effects) Ex: Cavin Care
Debasis Pradhan, XLRI, India

New entrants ( Cont..)
The product categories and the entry

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