SUPPLIER MARKET and

COMPETITOR
MG. JOSÉ ARMANDO ALIAGA CARVO
CEJ: 361
 SUPPLIER MARKET

The Market Suppliers the group of companies that

In the future, they will provide supplies to the company that
it would be created with the project. Generally the Market
Providers shared with the competition.

The supplier market often constitutes a

a factor as critical as the consumer market.
Many projects have an extreme dependency on
the quality, quantity, timeliness of the reception and
cost of materials. There are not a few projects
that base their viability in this market.
The study of the supplier market is more complex than
what may seem because they must be studied
all the alternatives for obtaining materials
cousins, their costs, purchasing conditions,
substitute products, perishability, necessity of
infrastructure, opportunity and delay in reception
availability, security, etc.

Price is also another important variable.

in costs as in capital investment
for work, that is why when studying the cost of inputs
the payment terms established by the
supplier, its credit policies and those of
discounts.
The supply market has its peculiarities and
there are 5 criteria to see if this market is
critical. If it is critical, it needs to be paid attention.
Much attention.
Identification of Raw Materials:What would happen
If we have 2 raw materials? We will not have
problems with our suppliers but... how
Would it be if we have 20 or 40 raw materials? If we
we dedicate ourselves to the business of artisanal sweets this
the market can be very extensive. I say this because of the great
amount of fruit needed for the immense
variety of sweets. Looking for alternative suppliers will be
a hard task.
•Characteristics of Raw Materials:For each
material there are different varieties, types of fabrics, types
There may be regulations and conditions regarding packaging.
specific for each type of industry, etc.
Supply source:Who supplies?
We generally consider alternative sources or well
we apply the concept of radio-supplying. It is
consider from the closest supplier to the furthest
distant.
Availability of raw materials:that our
the supplier tells us that they do not have raw material for
sell ourselves and therefore NOT be able to start that
so, so urgent request... it hurts.
Supply conditions:the environment and
environment, regulations, etc.
 SUPPLIER MARKET

With all this, we can define a profile of

suppliers, we can make projections
from the supply market, develop strategies
on how to supply ourselves (contracts of
exclusivity? pre-purchases? buy by
anticipated?) and the proposed solutions that
nos permiten incrementar nuestra ventaja
competitive and in the worst case, not
we can do it... not giving her an advantage
competition.
 MARKET
COMPETITOR
 COMPETITIVE MARKET
The competition is the company or group of companies that
they produce or sell similar or substitute products to
that a company produces or sells in the same market.
Competition can be direct when it comes to
companies that produce or sell similar products to the
of one, or indirectly when it comes to companies that
they produce or sell substitute products for one's (by
for example, a company that produces jam would be the
indirect competition of one that produces butter.
But generally speaking, at least in the case of small and
medium-sized companies, to carry out the analysis of the
competition is usually taken into account only the competition
direct.
COMPETITIVE MARKET
The analysis of the competition is the analysis of the
capacidades, recursos, estrategias, ventajas
competitive, strengths, weaknesses and others
characteristics of the current and of the
potential competitors of a company, that is
it is carried out in order to be able to, based on this analysis,
make decisions or formulate strategies.
•Elanálisis de la competenciaes la forma de poner tus
ideas in front of the mirror and confirm their defects and
weaknesses, as well as their strengths and opportunities.
When you start a business, you will encounter
somewhat annoying, but inevitable - and healthy - in a
market economy: competition.
 Objectives of a competitive analysis

There are four objectives you should keep in mind when

propose a research project to study and analyze your
competidores:

Know where and with whom you are really competing: don't be fooled
from the first impression, it is always advisable to delve deeper
little to properly identify your competitors more
remarkable and above all to come to know who is
doing things right, who doesn’t and what are the
market trends. At this point, it is important
a series of questions to which the answers will contribute
the information that is intended to be collected. It is about
very specific questions about your competition that more
let's detail further.
Identifying business opportunities: it is difficult
but perhaps you identify a poorly defined market niche
attended to by your competition.

•Detect elements in which to differentiate yourself: yes

you enter a market where others are already
competitors you will have to offer something different and
innovative so that your clients decide to go with you.

Anticipate the reaction of your competition: the creation

from your business can provoke a reaction from your
competition, especially if you take away clients, therefore
It is advisable to try to anticipate and foresee its
reaction.
 Techniques for competitor analysis
Visit your competition: visit the establishments of your competitors
main competitors and carry out an observation task with
a prepared script that includes all those aspects that you
it is advisable to know. The elements to be inspected will depend on
for each activity, here you have a list of variables:
Prices
Customer traffic.
Customer typology and profile.
Reputation and customer satisfaction.
Sales and distribution system.
Dimension and aspect of the premises.
Street appeal.
Opening hours.
Antiquity.
Number of employees.
Presence of the owners.
Suppliers you work with.
Visit your competitors' websites and social media: you must
proceed in the same way as the previous point if you are thinking of creating
an online business, including additional variables such as
design, usability, followers on social media, Alexa ranking
SEO positioning among others. Social networks can
to give you interesting information based on the comments
of the clients.

Situation plan of the competition and area of influence: yes

You are going to open a local business, locate it on a map of your area or
Identify your main competitors and define their area of influence.
both for customers who come on foot and for customers who
they arrive by car. In national businesses, they also
they can draw maps with radii of influence areas.
Analyze the market leaders: dedicate some additional time.
to delve deeper into the analysis of the commercial strategy of the
leading companies in the market: what products do they offer?
What prices do they have? What advertising do they do and what do they highlight?
Your commercial messages? Where are your products sold?
And above all, who are their clients and what are they like?

Request a company report and inform: if your

main competitors are companies, you can make a request for a
company report that allows you to know its sales, its
financial structure, who holds its executive positions and
possible links with other companies.
Tabla de puntos fuertes y débiles:prepara en una o dos
pages a comparative table where you synthesize the points
strengths and weaknesses of each competitor.
 Objectives of a competitive analysis

There are four objectives you should keep in mind when

propose a research project to study and analyze your
competidores:

Know where and with whom you are really competing: don't be fo
from the first impression, it is always advisable to delve deeper
little to properly identify your competitors more
remarkable and above all to come to know who is
doing things right, who doesn’t and what are the
market trends. At this point, it is important
a series of questions to which the answers will contribute
the information that is intended to be collected. It is about
very specific questions about your competition that more
let's detail further.
Forget about indirect competition: there are two types of
competition, direct and indirect. The direct one is the
that offers the same as you in the same market, but
there's also the indirect one, which sells products or
alternative services. As happens in the sector of
leisure: cinema, theater, concerts, sports, bars,
television at home, etc.

Trusting intuition and first impressions:

to say, to neglect this work of analysis of the
competition, not giving it priority and effort
what it deserves and conforming to approximations and
intuitions, occurring that generally tends to be
too late when they reveal themselves as
insufficient.
 FORCES
COMPETITIVE OF
MARKET
 THE FIVE COMPETITIVE FORCES
The first determinant for a company's utility is the
attractiveness of the industrial sector. It is understood as a sector
industrial to a group of companies that produce products that
they are close substitutes for each other.

Essentially, competitive strategy consists of embarking

offensive or defensive actions to create a position
defendable in an industrial sector, to successfully face
the five competitive forces and thereby achieve performance
superior about the investment for the company (Porter 1982).

The power of each of the five competitive forces is a

function of the industry structure, or the characteristics
economic and basic technical aspects of an industrial sector.
Threat of new competitors entering. The market or the segment does not...
it is attractive depending on whether the entry barriers are easy or not to
to make way for new participants who may come with new resources and
capabilities to seize a portion of the market.

The rivalry among competitors. For a corporation, it will be more difficult.

compete in a market or in one of its segments where the competitors
are very well positioned, are very numerous and the fixed costs are
high, as it will constantly be faced with price wars,
aggressive advertising campaigns, promotions, and entry of new
products.

Bargaining power of suppliers. A market or segment of

The market will not be attractive when the suppliers are doing very well.
organized in associations, have strong resources, and can impose their
price and order size conditions. The situation will be even more
complicated if the supplies they provide are key to the company, right?
they have substitutes or are few and expensive. The situation will be even more
criticism if it is strategically convenient for the supplier to integrate towards
forward.
 Bargaining power of buyers. A market or segment
it will not be attractive when customers are very well organized, the
the product has several or many substitutes, the product is not very
differentiated or is low cost for the customer, which allows for
can make substitutions for equal or very low cost. The more
the organization of major buyers will be their demands in
subject of price reduction, of higher quality and services and for
consequently the corporation will have a decrease in margins
of utility. The situation becomes more critical if to the organizations
it is strategically advantageous for buyers to integrate towards
back.

Threat of entry of substitute products. A market or

the segment is not attractive if there are real substitute products or
potential. The situation becomes complicated if the substitutes are more
technologically advanced or can enter at lower prices
reducing the profit margins of the corporation and of the
industry.
What are these forces for?
In any company, the analysis of the 5 forces makes that
a great tool for the company can be created according to
the great Porter tells us, considered one of the geniuses of the
today's economy.

What is the purpose for which they were created?

The objective is clear, what is wanted is to calculate the
profitability of a company in order to see the current value
of the company and the future projection.
Porter's 5 forces are one of the tools of
most used marketing strategies in the world and are designed
to provide support to businesses and companies that
they want to get the maximum performance from their
company in a good time.
Conclusion of Porter's five competitive forces

The first of the forces is the existence of products that can substitute the
This is one of the factors that produces the most competition. In this
in case it may be necessary to even reduce the cost.
The second force is rivalry. If our company has few
products in the sector, the rivalry we will have will be very low, however, if
What we offer is a product that many more companies offer - which are
those that are usually in high demand - the rivalry will be much higher.
The third force is the threat of new competitors. Here it is
where we really measure ourselves against other companies to see if our
the product is really profitable or not. Moreover, we can measure the attractiveness that
we have with the clients when we face other companies.
The fourth force is the bargaining power with suppliers. Here we
we found in the negotiation with the intermediary, which are the suppliers, the
which requires us to pay a little more attention, since they are the ones who
They really know where the profitability is in the sector.
The fifth force is the threat of substitute products. This refers to the...
direct negotiation with clients. This allows us to see if we really
we are reaching the customers and what is the degree of dependence or loyalty of
they with our products.