Wealthyvia

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Pritam Deuskar Wealthyvia - Micheal Porter model
factors definitely help us in analyzing
competitive advantage of a firm . In business
analysis one must see how much strength company
has got from various angles Here is an
explanation of the 7 drivers of market
attractiveness currently used in the Porter
analysis model.  According to Pritam Deuskar
Wealthyvia, it is important that the analyst
adopts an external perspective when carrying out
Porter analysis. Look at the market objectively, 
just as if you were a potential new entrant
evaluating it from the outside.
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MARKET ATTRACTIVENESS DRIVERS
1. Market Growth Market growth is a driver of
market attractiveness. Pritam Deuskar says,
"Fast-growing markets are more attractive than
mature or declining markets." For example input
5 if the market growth is everage, or 1-3 if the
market is  growing at more than 20 per year.
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2. Competitor Rivalry
A certain amount of competitor rivalry is present
in most markets. Dont naturally assume that the
market is necessarily higher than  average. Input
9 if you believe that your competitors are
adopting an almost irrational level of rivalry
activity-severe price competition, advertising
wars. If you believe rivalry to be average, input
5.
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• 3. Customer Power
• Is high when there is 
• High price elasticity (if price goes up, they
  buy less)
• High buyer concentration (few of them)
• High significance of purchases to buyers 
• Lack of differentiation between suppliers
• Low switching costs from one suppliers to other
  suppliers
• Quality is relatively unimportant to buyers
• Buyers operate on low profit margins - need
  costs reduced
• Buyers have good information about suppliers
  cost structures
• Threat of backward integration buyer enters
  your business

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• 4. Threat of Substitutes
• Is high when there is 
• New technology
• New materials
• New processes
• 5. Threat of New Entrants
• Is high when 
• There are low economies of scale
• There is little product differentiation
• There are low capital requirements
• Customer switching costs are low
• There is easy access to distribution 
• Government policy encourages new entrants

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• 6. Supplier Power
• Is high when 
• There is a high concentration of suppliers (few
  of them)
• There is a lack of substitutes/alternatives
• It is expensive to switch suppliers
• There is a threat of forward integration
  supplier enters your business
• Your industry is not that important to
  suppliers
• 7. Regulatory Pressure
• Is high when there are Government or other
  regulatory bodies (legitimate or otherwise) act
  to make the market less attractive.

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RELATIVE ADVANTAGE DRIVERS
Here is a description of the two drivers used to
establish a products relative competitive
advantage compared to competitors products. 8.
Market Share In a stable market shares measure
the firms relative competitive advantage or
disadvantage. If anybody is interested in knowing
about market shares, then visit the wealthy via
site. Here you will get the right information
about market shares.
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9. Virtuality Virtuality occurs when economies
of scale become negative. That is, when the
external supplier markets become more efficient
than the organization itself and the company can
procure and serve customers more efficiently
using external sources.  (e.g. outsourcing).
Organizations tend to improve incrementally,
whilst some supplier markets are improving
exponentially. Virtual   organizations tend to
monitor supplier markets and outsource to exploit
savings in both invested assets and
expenses.  Want More Information about drivers
of market attractiveness, Then visit Pritam
Deuskars wealthyvia Site.