What two factors are the primary drivers of this landscape
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/ Competitive Landscape: Key Driver and Impacts on Business The competitive landscape refers to the nature of competition. The description covers several topics such as the number of companies, company size, their strengths and weaknesses, barriers to entry and exits, threats of substitutes. Today, the competitive landscape changes rapidly, along with the
continued evolution of technology and increasing globalization. Each company is trying to transform its strategy so that it brings the consequences of a new landscape of competition. What are the main factors that have caused the competitive landscape to change in recent years: Shifts in the competitive landscape often cause conventional sources of competitive advantage to be no longer relevant. That forces many companies to revisit their existing strategy, whether it will still be relevant in the future. For
example, in the past, companies gained advantages by creating branding through a large advertising budget. Now, that may no longer be effective. Many small companies with minimal budgets can use cheap social media for advertising. The ad has a broader audience exposure than television or radio. The change also forces existing companies to adapt, if not, they fail. Many newspapers migrate to online channels, as do retailers. Some of them still maintain the old business model or combine both, to serve specific segments. Furthermore, a changing competitive landscape requires the adoption of a new mindset. Flexibility, speed, innovation, integration become more valued to meet the evolution of rapidly changing challenges. Flexibility is becoming increasingly crucial in carrying out strategic leadership and building dynamic core competencies. Used to achieve strategic competitiveness and earn above average returns The ASP Process: Strategies - Business Level, Marketplace Competition, Corporate-level, Diversified portfolio, International Strategy, Cooperative Strategy Performance - Governance mechanisms, organizational structure, strategic leadership, strategic entrepreneurship The strategic management process is made up of four elements: analysis, strategy, and performance. The five forces of competition (the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products, and the rivalry among competing firms) jointly determine the profitability of an industry due to the way they shape the prices which can be charged, the costs which can be borne, and the investment require to compete within the industry. Leadership will use the five forces framework to determine the competitive structure of an industry. The risk of entry by competitors increases the industry's capacity, starts a greater competition for market share, and generally lowers current pricing. Extreme rivalry among competing firms poses a strong threat to profitability to all firms within the industry. The bargaining power of buyers can reduce the profits within an industry by lower the prices and increasing the costs due to purchasing power (large quantity purchasers can drive down prices at a firm -- or the firm risks losing these large quantity sales to a competitor). On the other side of buyers, the bargaining power of suppliers can reduce a firm's profitability by increasing costs to the firm (or firms if the supplier provides multiple firms within an industry). Lastly, the threat of substitute products is a real threat to profits in that a large number of close substitutes for any product greatly increases competition in pricing and in turn drives profits down. What are the two primary drivers of the competitive landscape?Two primary drivers include technological changes, technology diffusion above many others.
What are the characteristics of competitive landscape?The main characteristics of a competitive landscape include the existence of a market and customers, the presence of many competing entities, and the relative strength of each competitor. Conducting a competitive landscape analysis can help organizations to understand this landscape.
How is the competitive landscape changing for business today?What are the main factors that have caused the competitive landscape to change in recent years: Rapid technological change has begun to disrupt various industries. For example, advances in interactive computer networks and telecommunications have blurred the boundaries of the entertainment industry today.
What should a firm do to earn above average returns?Above-average returns are earned when the firm uses its valuable, rare, costly-to-imitate, and non- substitutable resources and capabilities to compete against its rivals in one or more industries.
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