This PPT slide, part of the 40-slide Competitive Analysis PowerPoint presentation, presents an overview of the Porter Forces Model, emphasizing the need to expand the understanding of competitors beyond the obvious players in the market. It begins by defining the "Threats of New Entrants," indicating that these new players often come from different industries, but offer products within the same category as existing competitors. The slide highlights that the threat posed by these entrants is heightened under certain conditions, such as low barriers to entry, high industry profitability or growth, and low buyer switching costs.

The central section of the slide discusses the "Intensity of Competition," noting that competitors typically offer products within the same "product class." This suggests that companies must be vigilant about their immediate rivals, as the competitive dynamics can shift rapidly.

On the right side, the slide introduces the "Extended Competitor Set," which includes both current competitors and substitutes. Current competitors are described as those that are usually known and easiest to identify. In contrast, substitutes are products from a different class that fulfill a similar value proposition, making them harder to pinpoint. The slide underscores that the identification of substitutes relies heavily on market conditions, which can vary significantly.

This framework encourages executives to think broadly about competition, recognizing that potential threats may arise from unexpected sources. Understanding these dynamics can lead to more informed strategic decisions and better positioning in the market.

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