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USW1_DDBA_8161_week03_rivalryStrategyTool.docx

Rivalry Strategy Tool

Evaluating the Intensity of Rivalry (Mark an X in the appropriate box for each factor.)

1

2

3

4

5

<40%

40-50%

50-60%

60-70%

>70%

1. Number and Relative Size of Competitors

· Top 4 competitors’ combined industry marketing share

Explanation/Source of Data: _____________________

High

Med.

Low

<2%

2-5%

5-10%

10-15%

>15%

100%

75%

50%

25%

0

Low

Med.

High

Low

Med.

High

2. Degree of Industry Product Standardization

(take the average of bullet points below)

· Difference between competitors in price of similar products

Explanation/Source of Data: _____________________

· What % of industry’s products are sold at discount?

Explanation/Source of Data: _____________________

· Customers’ ability to recognize brands from industry

Explanation/Source of Data: _____________________

· Degree of switching Costs

Explanation/Source of Data: _____________________

<0%

0-1%

1-3%

3-5%

>5%

3. Industry Growth Rate

Explanation/Source of Data: _____________________

<70%

70-80%

80-90%

90-100%

>100%

4. Unused Industry Production Capacity

· % of industry wide production capacity currently in use

Explanation/Source of Data: _____________________

High

Med.

Low

5. Degree to which firms have high fixed costs or products have

high storage costs of are perishable

Explanation/Source of Data: _____________________

High

Med.

Low

6. Extent of Exit Barriers

Explanation/Source of Data: _____________________

Fiercely Competitive

Neutral

Mildly Competitive

Overall Intensity of Rivalry

(take the average of the major factors, items numbered 1 through

6)

Dyer, J. H., Godfrey, P., Jensen, R., & Bryce, D. (2016). Figure 2.4, Strategy tool: Evaluating the intensity of rivalry [Table]. In Dyer, J. H., Godfrey, P., Jensen, R., & Bryce, D., Strategic management: Concepts and tools for creating real world strategy (41). Hoboken, NJ: Wiley. Reprinted by permission of Wiley.