Porter's Five Forces
Degree of Rivalry
- Exit Barriers-is there a high cost to exit the market and go into a different one?
- Industry Concentration-This is the percent of market share held by the four largest firms in that industry based on N.A.I.C.S. codes. Click here to find the latest concentrations based on the Economic Census. Statistics for the largest 8,25,and 50 firms are also available.
- Fixed costs/Value Added
- Industry Growth
- Intermittent overcapacity
- Product differences
- Switching costs
- Brand Identity
- Diversity of rivals
- Corporate stakes-how heavily is the company invested in particular products/services
Sources which may help with information about rivalry and general industry background are as follows:
- Standard & Poor's (S&P) Industry SurveysPublished quarterly. Covers the 30 major industries which make up the S&P 500 . Gives a good overview of the industry, major news, trends, legislative/regulatory issues, statistics. Useful sections on specific sources to consult and how to analyze that particular industry.
- StatistaMake sure to look at dossiers and industry reports which will have more substantial information.
- EDGAR Database (Securities and Exchange Commission)Contains official SEC documents including Form 10-K, 10-Q, proxy statements, registration statements, and merger and acquisition documents.
Note: Be sure to look at the DEF14A (Proxy) statements and the Management Discussion and Analysis sections of Form 10-K & 10Q for insights into management.
- SEC InfoStart at the company website but don't stop there. Read the company's 10-K report to the SEC. Companies often describe the competitive environment and list their top competitors in their 10-K report. They describe their business, products and brands and discuss strategy in Item 1 of the 10-K. They evaluate the environment and identify risk factors in Items 1-A and 7-A.
- Morningstar Investment CenterLook up your company by ticker/name. Then look at the stock analysis if available. Competitors are usually listed.
- NexisUniGo to Company Dossier (upper left corner). Search for the name of the company/ticker. Go to competitors to find a list of the competing companies.
