is all about mutually satisfying exchange relationships for which the
catalyst is the producer's attempt to define and satisfy the customer's
of competition is one of the major reasons why marketing plans fail. When
one examine the nature of competition, you can find there are five forces
that shape competition.
competitors within an industry are jockeying for positions within a domain
dictated by external powers. Two of the powers, suppliers and customers,
are in the value chain which runs from raw materials to final consumption.
Some of the players in the various
industries in Malaysia are aggregated here.
powerful supplier can reduce an industry's profitability by raising prices
or reducing the quality of purchasing goods and services. The other two
dimensions limiting the competitive domain are the threat of substitute
products or services and the threat of new entrants.
in the industry try to differentiate themselves by having advertising
& promotional strategies to create a brand image or by developing
unique distribution channels like franchising, direct marketing, network
marketing, multilevel marketing to capture loyal customers or by
researching and commercializing new technologies and products.
firms can use export marketing to enter new
market areas and expand market share.
Our Free Advice on
highlight some of these issues.
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