Defining Industry Scope: Four Levels of Competition PPT
An industry can be conceptualized through 4 distinct levels, each offering a unique perspective on its scope and competition. This PPT slide, part of the 654-slide Business Unit Strategy Training Program PowerPoint presentation, outlines these levels, emphasizing the importance of viewpoint in defining industry boundaries.
At the top level, "Same products," we see a focus on manufacturers producing identical items, such as luxury automobiles from brands like Lincoln, BMW, Mercedes, and Lexus. This level is narrow, concentrating on direct competitors within a specific product category.
The second level, "Similar product or product range," broadens the definition to encompass all automobile manufacturers. This perspective captures a wider array of competition, recognizing that various brands may offer similar vehicles, even if they differ in features or branding.
The third level, "Products that serve same needs," expands further to include not just cars, but also manufacturers of motorcycles, bicycles, and trucks. This level reflects a more holistic view of consumer needs, acknowledging that different types of vehicles can fulfill similar purposes for customers.
Finally, the lowest level, "Products competing for the spending of the same customer group," takes an even broader approach. Here, the focus shifts to all companies selling major consumer durables, such as homes and household appliances. This level illustrates how industries can overlap significantly in terms of consumer spending, regardless of the specific product.
Understanding these levels is critical for strategic decision-making. It helps executives identify potential competitors and market opportunities that may not be immediately apparent. Each perspective offers insights that can guide product development, marketing strategies, and overall business positioning.
This slide is part of the Business Unit Strategy Training Program PowerPoint presentation.
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Consulting Training Strategy Development Industry Analysis Environmental Analysis IT Strategy Product Development Purpose Positioning
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