Competition Analysis

Competitor evaluation not only gives more insight into the strategies and goals of the competition but it also provides a bird’s-eye view of the trends and future of the industry in which the firm operates.  Competitor analysis begins with identifying present as well as potential competitors. It portrays an essential appendage to conduct an industry analysis.

Michael Porter in Porter’s Five Forces Model has assumed that the competitive environment within an industry depends on five forces.

These five forces should be used as a conceptual background for identifying an organization’s competitive strengths and weaknesses and threats to and opportunities for the organization from it’s competitive environment.

·         Threat of new potential entrants: The new entrants will have a tough time to overcome the barrier as there is tough existing competition. This might affect the survival of the new entrant. Since Kissan jam is already so much dominant into the market, the new entrant might face problems in establishing itself.

·         Threat of substitute product/services: There are few other existing brands which have similar products but their market share is not as strong as Kissan. Honey stands to be a strong contender in this category since few health conscious people might opt for honey which has healthier composition.

·         Bargaining power of suppliers: Since Kissan jam is a FMCG product therefore it has enough suppliers who cannot break the flow, so this segment remains quite attractive.

·         Bargaining power of buyers: Customers can force down prices, demand more service or better quality, and even pit competitors against one another. But again Kissan jam having very limited competitors, it faces very rare scenario of the bargaining power of buyers. Though bulk purchase from the supplier might force down the price for end customers.

·         Rivalry among current competitors: There are few existing competitors like Sil jam, Mala jam, Mapro jam, Druk jam. These leads to price wars and ad wars. But Kissan stands out as it has strong brand name, excellent advertising and visibility, good product distribution and availability and lots of flavours and varieties. 

     Competitors should be analyzed along various dimensions such as their size, growth and profitability, reputation, objectives, culture, cost structure, strengths and weaknesses, business strategies, exit barriers, etc.