1) How do you calculate Intensity of competition ? Is it qualitative in nature like market interviews? 2) Can you explain the Customer access in more detail? If we aren't currently present in let's say Americas, then how would you estimate the customer access?
Thank you for these smart follow-up questions, @Rishiraj Parekh. 1. Indeed, in a first step such a competitor analysis would be of qualitative nature. You call up some industry experts who give you their assessment on the "state of the union". If you however want to drill deeper, you can prop it up by some quantitative analyses, too: You then check distribution of market shares (is it oligopoly or polypoly), EBIT(DA) margins of the top players in the market (if you can get them), sales growth of key competitors, number of new joiners, etc 2. Customer access analysis you can indeed expand, too. In this example, I started by checking overall market shares if our fictional client company already has a local footprint. If not, you would check a number of qulitative criteria, such as: 1) How fast can we implement a local distrubution chain? 2) How fast can we set up an effective local sales team? 3) Do we understand specific requirements and culture well enough in the target country? 4) Are there any other (e.g. regulatory) barriers to entry or barriers to establishing a connection to our new target customers? You can always dig deeper if you have the budget and the time! Hope this inspires you on how you can proceed on your two areas of interest.
Thank you! Much appreciated!
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1) How do you calculate Intensity of competition ? Is it qualitative in nature like market interviews?
2) Can you explain the Customer access in more detail? If we aren't currently present in let's say Americas, then how would you estimate the customer access?
Thank you for these smart follow-up questions, @Rishiraj Parekh.
1. Indeed, in a first step such a competitor analysis would be of qualitative nature. You call up some industry experts who give you their assessment on the "state of the union". If you however want to drill deeper, you can prop it up by some quantitative analyses, too: You then check distribution of market shares (is it oligopoly or polypoly), EBIT(DA) margins of the top players in the market (if you can get them), sales growth of key competitors, number of new joiners, etc
2. Customer access analysis you can indeed expand, too. In this example, I started by checking overall market shares if our fictional client company already has a local footprint. If not, you would check a number of qulitative criteria, such as: 1) How fast can we implement a local distrubution chain? 2) How fast can we set up an effective local sales team? 3) Do we understand specific requirements and culture well enough in the target country? 4) Are there any other (e.g. regulatory) barriers to entry or barriers to establishing a connection to our new target customers?
You can always dig deeper if you have the budget and the time! Hope this inspires you on how you can proceed on your two areas of interest.