Small Business Consulting Firm Can Determine Competitive ...

How can you make sure you enter the market with a competitive advantage? Determining when and how to enter a new market may be intimidating for a first time small business. One way a small business consulting firm can help ease your concerns and make sure you have a competitive advantage is to conduct an industry analysis.

An industry analysis allows you to look beyond the walls of your company and determine the environment in which you will conduct your business. Michael Porter of Harvard Business School, an expert on competitive strategy, proposes five forces that drive industry competitiveness. These are rivalry, power of buyers, power of suppliers, threat of substitutes, and barriers to entry.? By understanding the industry and where you fit, you will be able to gain a competitive advantage.

When thinking about entering a new market, most small business owners recognize the importance of evaluating the rivalry or competition among current industry competitors. As a small business owner it is important to ask yourself, how many competitors are in your industry and what makes you stand out among the competition?? Is your product differentiated or specialized?

While you may find a lot of answers there, evaluating the competition is only one of the five forces.? It is also essential to evaluate the relative power of both buyers and suppliers.? How much power do buyers have to negotiate or set prices? And, on the other end, how much power do your suppliers have in setting their costs? Do you have options available if there is a problem in the supply chain?? Thinking about your relative power in comparison to your buyers and suppliers can provide you with important insight and give you the necessary information to gain a competitive advantage.

It is also important to think about how easily other companies can enter the market- creating more competition- and whether there are substitutes to your product. For example, are you in a highly specialized industry that requires high capital investment and high skilled labor?? Are there lots government regulations?? On the other end, what alternatives are there to your product? How likely are potential buyers to use the substitute products?

A small business consultant, like the Connell Curtis Group, can guide you through these and many other questions to help you determine your competitive advantage.

mls cup amas 2011 black friday elliot elliot la galaxy la galaxy