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Competitive Intensity and Its Implication on Strategic Position of Companies
Keywords
Competitive Intensity, Competitive Forces, Strategic Position
Abstract
The power of competition is an essential aspect of companies’ external environment and their regional units, which influence the decision on strategy, the decision to enter new regions and markets, the choice of models and assessment of performance. Even if the reflection of the issue of competition in scientific publications is very broad, the aspect of measuring and assessing it is mentioned only a few works. And, more often the degree of competition is presented as something self-evident. While the phenomenon of competition is so difficult, multifaceted and variable, that requires specific criteria and methods for assessing the intensity of competition, adequate to the specificity of a certain market or region. The present paper is focused on the analysis of competition intensity and its influence on strategic position of companies on the market. All analyzed factors are important and significantly can intensify the competition fight among the firms. Thus, the main factors determining the intensity of competition examined in the paper are the distribution of market shares among the competitors, the growth rate and the profitability of the market. In this context, the quantitative coefficients of characterized factors are proposed to be examining as the measure of the competitive intensity. Furthermore, the competitive intensity has its implication on strategic position of companies, giving each of them its place on the market.