Measurements for evaluating the competitive strength

Question

What are the measurements for evaluating the competitive strength used?

Answer 1

Calculating competitive strength scores for each business unit: Quantitative evaluates of each business unit’s competitive strength can be evaluated using a process similar to that for measuring industry attractiveness. Calculating Weighted Competitive Strength Scores for a Diversified Organization’s Business Worth examines this process. There are a host of measures that can be used for evaluating the competitive strength of a diversified organization’s business subsidiaries:

i. Relative market share.

ii. Costs comparative to competitors’ costs.

iii. Capability to beat or match rivals on main product attributes.

iv. Capability to work out bargaining leverage with main suppliers or consumers.

v. Caliber of alliances and collaborative partnerships along with the suppliers and/or buyers.

vi. Brand reputation and image.

vi. Competitively valuable abilities.

vii. Profitability relative to the competitors.