Analysis of Competitive Forces in Key Industries
ELECTRIC SECTOR
1) Competitive Forces:
a) Number of Competitors: Monopolistic activity and competition (generalization and marketing). The CNE: regulator, the REE: Gestro transport network, OML: wholesale market operator. Because marketing is not new competitors enter. Endesa and Iberdrola, have high market power, dominating both production and distribution, allowing them to exert power over price. Very few consumers who have entered the free market and continue through rate.
b) Potential Clientele: Population, need ….
c) Degree of Negotiation: Duopoly high …. set prices.
d) Barriers to Entry: There are significant entry barriers, technological barriers, integration with business groups, who control both the production and distribution, q requires new competitors in both assets to make heavy investments. financial.
e) Substitute: No
2) Concentration of Industry: High concentration, two large companies (Endesa and Iberdrola), no foreign trade in electric power: France and Portugal are public companies. It is a great problem of excessive concentration in generation in this way allows them to dictate prices.
3) Degree of Maturity and Expectations of Growth: Mature market. Demand is strong and growing difficulties in finding alternative sources of energy.
4) Degree of International Competition: Lack of interconnection with other countries, there are trading opportunities abroad, with private companies and is being liberalized in Latin America.
GAS SECTOR
1) Competitive Forces:
a) Number of Competitors: Once there was little competition. But with the hydrocarbon law was created Natural Gas, for the production and distribution, leaving only Enagas transport. Over time businesses emerge as Repsol and Cepsa, q hacen q the degree of rivalry is the higher.
b) Potential Customers: Due to the expansion of distribution networks and transport of natural gas, increasingly the consumer is no wider.
c) Degree of Negotiation: Spain is mid finandieras with economic aid and development of their estruturas from the European community.
d) Entry Barriers: Improving the technology (there are more competitors makes q), heavy dependence on exteriro because the deposits are far from Spain.
e) Product Replacement: Oil, Coal …. The only advantage ambienete respect to the environment and the cleanliness and comfort.
2) Concentration of Industry: Due to the merger of the companies there is a high level of industry concentration, which explains the lack of competition in the same importatne.
3) Degree of Maturity and Expectations for Growth: Some mature sector due to its late expansion into Espña, go to crecimietno have a high level, this constantly expanding.
4) Degree of International Competition: The industry does not have large national competitors, and q there is little that is Spain yaciientos, avoids heavy reliance ector.
STEEL INDUSTRY
1) Competitive Forces:
a) Number of Competitors: As a highly concentrated sector, the rivalry is very high. There are five European groups formed to deal more facimente to new suppliers.
b) Potential Customers: Companies intermedisas both for processing and for final consumption.
c) Degree of Negotiation: High power because of the five products.
d) Barriers to Entry: Great investment in capital and financial structure, plus the fixed costs are very high.
e) Product Substitution: Steel is the commodity for ductile structures …. plastic.
2) Concentration of Industry: Great concentration at both national and international level, due to partnerships: 5 European groups
3) Degree of Maturity and Growth Expectations: Mature industry and economies of scale, if demand does not grow there is a structural oversupply.
4) Degree of International Competition: Highly globalized sector both in the final product (steel) and the raw matei (iron), so there is plenty of competition at international level, there is a process of business concentration functions.
TEXTILE SECTOR
1) Competitive Forces:
a) Number of Competitors: Developing countries can offer the product at lower prices due to low costs, so there are quite cometitividad. Admas between companies in this sector, especially those engaged wing q same branch, there is strong competition, this is because wing influx of procedures of the domestic market.
b) Potential Clientele: From children to seniors, that if designed to appeal.
c) Level of Trading: People’s tastes change very fast, so it is a very dynamic sector, x what must design and make available to their customers their products tailored to those tastes. There is cooperation between companies.
d) Barriers to Entry: Since 2005, non-existent, but if q ferenciación bear the costs and distribution channels.
e) Product Replacement: None.
2) Concentration of Industry: There is vertical concentration. This sector is fairly concentrated, while the degree of negotiation and rather low, since the existence of family SMEs is high character.
3) Degree of Maturity and Growth Expectations: I Expected growth, will suffer the internalization, innovation and research of R & D + i, q Admas of presumed future with a short series of rapid responses and high added value.
4) Degree of International Competition: It is very high, since this sector for a few years will be liberalized further emiezan Asian countries to highlight in this sector.
AUTOMOBILE INDUSTRY
1) Competitive Forces:
a) Number of Competitors: Oligopoly, competition between firms and plants due to overcapacity.
b) Potential Clientele: People of all classes, with ranges of different cars, a sector is conditioned by the general economic environment. Correlation between richness and automobile.
c) Degree of Negotiation: The importance of suppliers and administration, due to globalization.
d) Barriers to Entry: Investment millions for the safety of their assets and liabilities in invarsión great ingraestructuras, Alizanza need to share technologies, manufacturing and auxiliary composition.
e) Product Substitution: Other transportation (buses, motorcycles …)
2) Concentration of Industry: High concentration due to alliances and mergers both domestically and internationally.
3) Degree of maturity and growth Expectations: It is a little stagnant sector by the economic downturn, the sector that even with # of years mature, always growing due to technological advances and new technologies.
4)Degree of international competition: Spain is well placed because it can compete on cost and quality, but runs the risk of offshoring, the market is underdeveloped inerno.
ICT Sector
1) competitive forces:
a) Number of competitors: Oligopoly, in this sector is very important to be 1.
b) potential clientele: all types of customers: personal and business … service-user relationship
c) Level of trading: being a competitive sector, we need a grand bargain.
d) Barriers to entry: strong investment in technology R & D, large imports to be the No 1 in: econ. of scale, security, privacy, cultural impediments, logistics and transportation.
e) Product replacement: there has been a great diversification of the product, create more and more customer-specific products and Admas different consumers have different needs.
2) Concentration of Industry: highly concentrated.
3) Degree of maturity and growth Expectations:Sectra is mature by the time due to his years on the market, but has a very high growth expectations. It is necessary that expectations are good that contribuyue directly or indirectamene in generating employment and GDP cricimiento. USA advance; EU delayed.
4) Degree of international competition: the great competition raises dynamism in the sector for the future is expected to change in the cost structure, reduce market power, reduce costs and raise revenue.
OIL SECTOR:
1) competitive forces:
a) Number of competitors: There are few companies that there is a great rivalry, both in the production, distribution or transport, although the hydrocarbons law firms have emerged more and more competitive prices.
b) Potential Customers: All populations’ in general, since q is needed for HACR fuel oil for the production of all types of plastics, computers, pens ….
c) Degree of negotiation: imitated, because the few companies dedicated to the extraction.
d) Barriers to entry: Limitations of the entry of new stations, claudulas contract terms, legal barriers, dificaultad of search providers (unfair contracts)
e) Product substitution: Dificil (biodiesesm, biodetano ..)
2) Concentration of Industry: Internationally, there has been a enrme concentaración between companies, mainly controlled by OPEC (controls more than half of the production), high concentraccion the industry: oligopoly unbalanced with a lack of competition.
3) Degree of maturity and Expectations for growth: Demand and production vrec, the market is conditioned by the political environment, where preciios are unstable.
4)Degree of international competition: It has gone from a situation monoposto a situation of competition between firms. ADME few companies although the competition is very strong.
Shipping:
1) competitive forces:
a) Number of competitors: The number of competidoes rises and increases with the entry of Asian countries which have very low labor costs have led to q that takes q adopted as policy sales dumping low cost.
b) potential clientele: Army, Merchant Marine, pesquerasm companies, cruises (pers. trip)
c) Level of trading: Trading in ancillary industries is my major, q q is a sector that is within the industries of synthesis.
d) Barriers to entry: Capital investment, ecocomias of scale, is a cyclical industry and sensitive mus economic cycles and political change, social or merametne shipping.
e) Product substitution: weak, and q is the only one capable of carrying very large capacity for long distances.
2) Concentration of Industry:It is a highly concentrated sector undertakings given q lso new countries offer very low prices and the companies industris traditions must come together to be stronger. High technology (Cores, China and Japan)
3) Degree of maturity and growth Expectations: It is a very mature field and q is a traditional industry and national economy basic mcuho.
4) Degree of international competition: The international competition is very important and unfair, that they posses mcuho of those yards. Spain has been unable or have not heard undescenso of templates and production, although improved productivity.
Aerospace
1) competitive forces:
a) Number of competitors: q This is a sector dominated by U.S. companies with Boeing and Airbus. Highly automated industry. It is Spain’s leading company EADS-CASA, far above the rest.
b) potential clientele: Governments and other authorities, especially for civil and military aircraft.
c) Level of trading: big.
d) Barriers to entry: High costs of development and industrialization, heavily dependent on state porgramas very expensive and requires long-term, high quality, high R & D & I.
e) substitute: no
2) Concentration of Industry: High level of concentration and collaboration in international pogroms, due to the absolute domination of Boeing and Aribus, q what causes the decisions you make between the two.
3) Degree of maturity and growth Expectations: Low Grade for his recent appearance, progressive growth + q anything necessary for international integration. Has clear and high hopes for the future.
4) Degree of International Competition: The company invests more in R q & D is the most competitive and specialized, high competititvidad lately due to the inclusion of countries like Russia and China.