What is a competitive structure?
The competitive structure concerns the system used by organizations to evaluate its goods or services to find out the way in which it compares to similar offers on the competitive market. The evaluation of the product or service using a competitive structure may include the evaluation or analysis of other competitors and how easy or difficult it is to penetrate a targeted market. It may also require an examination of the supply and demand level in relation to the product.
established companies can use the study of competitive structure to analyze their products, while potential investors can use the same method to study the market in order to determine the state of the market in relation to their chances of success. One of the factor potential participants during a competitive structure analysis is the ease of entering the new market. For example, a company that wants to embark on the Energy Sectorus by the fact that with a kind of holding in this sector, which makes it somewhat difficult for new participants to penetrate any meaningfulin a way.
Some companies may decide to perform periodic studies on the current state of their products on the market in relation to other competitors. For example, a company that produces toilet paper can conduct various studies such as a consumer base study, spending and demographic consumers. This information will help the company find out consumer preferences in relation to other competitors' offers. Information obtained during this analysis of competitiveness of the structure will help the company make any necessary changes in its products in order to excel in the product of competitors.
Another type of study of a competitive structure that companies must perform within its environmental studies is a study on the number of competitors that the company has in the area considered. For example, if in America there is a company that produces the rolesPaper, it will have to find out the number of companies that produce similar products in this country to learn the market saturation. This study can also be performed at a smaller or more immediate level, such as finding out the number of companies in the state instead of the whole country or even at an international level. The level of supply or demand simply means studying a competitive structure to see if the product level is at the same level as consumer demand, or whether there is demand for consumers at the same level with the offer level from the manufacturers.