An easy -to -understand explanation of industry analysis methods in abundant examples!
Five Force Analysis "Marketing Course to prevent entrepreneurship independent failure"
Do you know Five Force (5 Force) analysis?Fiveforce analysis is a framework that analyzes the threats of the external environment and creates a strategy for the company to grow.
The external environment cannot be changed by our own efforts.However, if you are not analyzing the external environment, you may be delayed to notice the approaching threat, and you may be forced to withdraw from the market.
If you are aiming for entrepreneurship independence or if you are considering entering a new business, the analysis of the external environment you should definitely do is this "Five Force Analysis".
This time, I will thoroughly explain Five Force Analysis.In order to survive the market where the change is intense, this article is a must -read content.
* In the "Founding Handbook" that writes this article, more fulfilling information is also explained in the thick "Founding Handbook / Printing Version".Please order it because you can get it for free.
Contents of this article
What is Five Force (5 Force) analysis?
Five Force Analysis is Michael E at Harvard University.A framework for analyzing the competitive factors in the industry proposed by Professor Porter.By dividing the competition that affects the company into five, analyzing the current situation and making future predictions, it can be useful for the strategy that the company should take.
The five competition factors are as follows.
I will explain each.
Competitive companies (competition within the industry)
The existence of competitors has a major impact on the company.It is a major threat to the company if the number of competitors is large or the competitors have powerful capital and technical skills.
By analyzing the number and strength of competitors, you can predict the impact on your company and consider the strategy you should take.
It is important to establish a differentiation and superiority from other companies in order to make competition with competitors.Consider whether you can establish difficult positions that are difficult to follow other companies, such as developing your own technology and maintaining overwhelming advantage at prices.
For example, supermarkets in the city are competing with nearby supermarkets.Each store is competing with items, prices, point services, and freshly prepared dishes.
What are the characteristics of competitors, what strengths are in the company, and what do customers decide and choose a store?
It is important to analyze such a competitive state and know the current situation of the company to consider whether there is no new winning line.
Buyer negotiations
If the buyer's negotiations are strong, pressure on their own interests.The only situation that the buyer's request is to be requested is a significant impact on the buyer because the company cannot control the price.
In cases where the buyer's negotiations are stronger, buyers are easy to procure from other companies, or buyers are increasing.
In order to be superior to the buyer's negotiations, a strategy is to establish a company's unique technology and create value that can only be provided by the company, or secure another buyer so that it does not depend on a specific buyer.It is.
For example, if you are a supermarket in the city, you can buy what you need even if you are a competitors of competitors.If there is a special sale at a nearby supermarket, customers will easily flow, so the buyer's negotiations are strong.
However, if there is a specialty fried chicken that can only be bought in -house, customers have to buy them in -house.Developing such a killer content is one of the means to compete with the buyer's negotiations.
Seller negotiations
If the seller has a strong negotiating power, it has a significant impact on the company's productivity and price setting.If a specific seller has an indispensable part, materials, and services for the company, the company may succumb to the seller's negotiation pressure.
In order to compete with the seller's negotiations, there are strategies such as searching for other companies that can procure parts, materials, and services that are indispensable for the company, or developed them on their own.
For example, in a city supermarket, no matter how rising the price of vegetables, you have to secure a certain amount of product, so you have to buy it at the wholesaler asking price.
However, if you can set up your own farm and procure the best -selling vegetables in -house, you will be able to control stable supply and purchase prices.
Threat of new entry
If a new trader enters the market, it may threaten your position and have a huge impact.If a company with unprecedented prices and new value enters the market, there is a risk of worsening its share and profit margin.
In order to compete with the threat of new entry, developing patented technologies unique to the company, adopting the fields that are effectively monopolized as the de facto standard (industry standard), and incorporate regulations on laws.You can think of a means.
It is also conceivable to build overwhelming brand power, or to eliminate new entrants by forming tags with governments, local governments, and industry.
For example, if you are a supermarket in the city, a major discount chain with huge capital may enter the neighborhood.You may be deprived of your own share.
As a countermeasure, strategies such as tagging with local companies to oppose the invitation, or to enhance membership functions and prevent customer leakage.
Substitute threat
With the advent of new products and services like unprecedented, the market and the value of the company may be replaced.
In order to compete with the threat of alternatives, there are strategies, such as increasing switching costs to prevent transfer, and enhancing their own uniqueness and value and establishing a position that is difficult to replace.
For example, if you are a supermarket in the city, the rise of internet supermarkets and delivery companies will be threatened.In the first place, there is no need to go to a supermarket and shop.
As a countermeasure, there are strategies such as preferential treatment at the point of visiting the store, such as preparing a super special price and promoting visiting the store.
関連記事リードナーチャリングとは?手法や事例、メリット、注意点を徹底解説!BtoBとは?事例や成功させるためのポイント、似たような用語との違いを解説Five Force (5 Force) Analytical Benefits
What are the benefits of the company by doing a five force analysis?Here are three main benefits of Five Force Analysis:
I will explain each.
You can correctly recognize the environment surrounding your company
By performing a Five Force Analysis, you can correctly recognize the environment surrounding the company.
Analyzing the environment surrounding the company is not only not only detecting the threats that are approaching the company, but also by catching the trend of a tailwind for the company.
Once Sony, which had been doing well in consumer electronics sales such as television, PCs, and Walkman, Sony was struggling with its consumer electronics sales.With the entry of emerging countries that swept the home appliance market at a low price, the rapid spread of smartphones by domestic manufacturers, and the rapid spread of smartphones due to Apple and Google, the strength of Sony's home appliance manufacturer has been lost.
However, it is now a dramatic recovery of V -shaped by overcoming the crisis and distributing digital content, such as games, movies, and music.
If you do not recognize the environment surrounding your company and take advantage of your strengths, you may not have had the current Sony.
In order to correctly recognize the environment surrounding the company, Five Force Analysis is the best.
You can quickly notice the threat that threatens your company
By performing a Five Force Analysis, you can quickly notice the threat that threatens your company.
In particular, it is important to analyze the threats of new entry and the threat of alternatives.Because it destroys the balance that makes up the market and the values so far.
For example, film cameras were once deprived of digital cameras.However, this was the main battle between camera manufacturers.However, with the advent of smartphones, the digital camera market has rapidly declined.
This is exactly the threat of an alternative.The market changes rapidly by approaching a completely different angle.
However, Fuji Film, which had shifted from a film camera to a digital camera, advanced to the field of cosmetics and medical care, taking advantage of nanotechnology.Even if the digital camera market has declined, it is still maintaining strong sales.
On the other hand, Kodak, on the other hand, fails to respond to changes in the camera market.
There is no other way to analyze the market with a sense of crisis for such sudden changes in market and customer needs.
It is important to use Five Force Analysis to notice the threat that threatens the company as soon as possible.
The company's growth strategy becomes clear
If you are aiming for entrepreneurship independence or those who are trying to enter new businesses, make use of the Five Force Analysis.Because you can clarify your growth strategy.
The external environment cannot be changed by our own power.Conversely, if you take the waves of the times and accurately grasp the market needs, you can grow up to grow.
On the other hand, if you enter the market with your own commitment and beliefs with insufficient analysis of the external environment, you will fail to start a business independence or launch a new business.
No matter how well your product is complete, no matter how much you can improve your sailing skills, you won't be able to see it unless you have marketing.
EV Tesla has entered the field of electric vehicles and autonomous driving since early.This is because the energy and environmental problems are serious and the dramatic innovation that will occur in the realization of autonomous driving, which predicts that the automotive market will change.
Initially, Tesla, who was inferior in technical and practicality, had a reputation every time an accident occurred.
However, now that technological innovation has progressed and the waves of EVs and automatic driving have suddenly rushed, Tesla has grown significantly to the market capitalization of world -famous automakers.Tesla was able to accurately predict the times.
If you have a solid Five Force analysis, you can clarify the strategy you need to take.If you can create values that other companies have and to capture changes in the market, you can grow your company greatly.
Case of Five Force (5 Force) analysis
Here are some examples of Five Force Analysis.Please refer to it when actually performing a five force analysis.
I will explain each.
Convenience store industry Five Force Analysis Case
First, I will introduce examples of five force analysis in the convenience store industry.
Competitive companies (competition within the industry)
コンビニ業界は、セブンイレブン、ローソン、ファミリーマートの3強が市場をほぼ寡占している状況です。仮にコンビニ業界に新規参入するのであれば、よほどの差別化やブランド力がなければ、競合に勝つことは難しいでしょう。
Also, if you are already in the convenience store industry, it will be difficult to survive in the market unless you have a different strategy.Considering the decline in domestic population, it should be considered a market that is difficult to survive.
Buyer negotiations
Many convenience stores have many individual customers.Convenience stores sell convenience and do not discount much, so it cannot be said that the buyer's negotiations in terms of price are strong.
However, customers can freely choose convenience stores, so they will not be a market that is more advantageous than buyers.
Seller negotiations
Lunch boxes and sandwiches, which are the main products of convenience stores, are often manufactured in -house.In addition, since there are many purchases and the replacement of products is intense, you will not buy it at the manufacturer's asking price.
It is not a market with strong negotiations for sellers, but is a highly profitable market.
Threat of new entry
The convenience store industry is in an oligopolistic state, and newcomers may not appear easily.
Substitute threat
As a threatening convenience store, you can think of online shopping such as Amazon and delivery services for restaurants.If a supermarket or drugstore starts drone delivery, no one may bother to order at a convenience store with a high selling price.
コンビニ業界のファイブフォース分析まとめ
Convenience stores are sold without much discount, so if you want to enter, you can temporarily play a game in terms of price.However, if a major company discounts the same way, there is no win.
If you have already entered the convenience store market, it is difficult to compete with the convenience of the major companies, so it may be better to enter the top three or to withdraw early.
Also, in the long term, it is difficult to avoid the impact of the decrease in the domestic population, so it may be said that survival is a tough industry unless you can determine a good win.
Automotive industry Five Force Analysis Case
Next, let's do a Five Force Analysis, taking the automotive industry as an example.
Competitive companies (competition within the industry)
There are many major car manufacturers such as Toyota, Nissan, and Honda.In addition, many foreigners such as Mercedes -Benz and BMW have entered, and there are many competitors in the narrow Japanese market.
Buyer negotiations
Because of the many competitions, it is easy to demand discounts, and the buyer's negotiations are strong.However, it may be a case -by -case because popular models do not need to be discounted.
Seller negotiations
Except for a part of special parts and materials, the seller has a strong negotiating power.Since the car manufacturer is strictly costing, it seems that the seller will not be dominant.
However, if a supplier with innovative patent technologies appears, the seller's negotiations may increase.
Threat of new entry
The threat of new automakers such as Tesla is great.The automotive industry, which was a collection of mechanical parts, was an industry with a wide and difficult to enter.
However, with the development of electrification technology, it has become possible to greatly reduce mechanical parts and make cars.Since electronic components are becoming a combination, manufacturing can be outsourced.
In the future, Apple and Google will also enter the field of autonomous driving, so the automotive industry is standing at a very severe crossroads.
Substitute threat
As autonomous driving progresses, individuals may not need to own a car in the first place.Also, if drones and AR (expansion reality) technology develop, people may not bother to go out.
自動車業界のファイブフォース分析まとめ
The automotive industry is already competing, making it easier to enter.In the first place, there is a possibility that you will not need to own a car, so it seems to be a tough market for existing manufacturers.
On the other hand, innovative ideas and technology are becoming possible to enter the automotive market even with small capital.The car market is huge, so it seems to be an attractive market for new entrants.
Aviation industry Five Force Analysis Case
Finally, let's do a five force analysis, taking the aviation industry as an example.
Competitive companies (competition within the industry)
The domestic aviation industry has most shares with JAL and ANA, but there are Skymarks and LCCs, making it a fierce market.
In addition, overseas flights, which had many dollar box routes, could not be expected at all due to the influence of Corona.
It is exposed to a very harsh market environment.
Buyer negotiations
In the case of air tickets, buyers cannot directly negotiate discounts, but they tend to buy cheap tickets, and domestic routes are competitive with the Shinkansen, so it can be said that the buyer's negotiations are strong.
Seller negotiations
Aircraft equipment depends on overseas manufacturers and there is no other procurement, so the seller has strong negotiations.
Also, even if the fuel rises, you have to fly an airplane as long as there are passengers.Even if the fuel is high, it can not be purchased, and it is difficult to pass on the fare immediately.
It can be said that it is susceptible to the seller.
Threat of new entry
It is unlikely that a new airline enters the country.At one point, the busy LCC has been under the umbrella of JAL and ANA.
Competition on international flights had many new entrants, including overseas, but it seems that there will be no major movement for a while due to the influence of Corona.
Substitute threat
Due to the influence of Corona, home and online has progressed.Domestic and overseas business trips are replaced with online tools such as ZOOM.
As for travel, as AR (expansion reality) technology develops, the number of people traveling to time and cost may decrease.
In the long term, more people may go on a space trip with rockets rather than going to Japan or overseas by plane.
航空業界のファイブフォース分析まとめ
In the aviation industry, the market has changed completely due to Corona.It is impossible to predict what the expected overseas routes will be due to the development of onlineization.
Since it is an industry with large fixed costs such as aircraft, fuel, labor costs, etc., it seems that the situation will continue in a difficult situation unless many people use airplanes overseas as before.
Fiveforce analysis method / procedure
From now on, I will explain the method and procedure of Five Force Analysis.
Here, in order to make it easier to understand the explanation, you, who run a Western restaurant in the city, assume that a healthy hamburger with a lot of red meat will be put into a new menu, and we will analyze a five force.。
Think about the content of the commentary together while replacing it with your business.
Competitive companies (competition within the industry)
Western restaurants have a fierce competition with family restaurants.When it comes to hamburgers, they compete with steak restaurants and fast food.
It competes with convenience store retort products and supermarkets, so it is a very competitive market.
However, if it is a narrow hand with a healthy hamburger using red meat, it may be possible to differentiate from competition.
このように、自社が競合する他社の状況や競争状態を正確に分析することが大切です。自社にとって不利な状況も、目を逸らさずに向き合う必要があります。
Buyer negotiations
Buyers who want to eat hamburgers have a lot of options for shops, so they have a strong buyer's negotiations.
A healthy hamburger with lean meat may be able to catch the hearts of health -conscious customers.
ですが、よほどの理由がない限り、何度も自社のハンバーグを選んでくれることは無いでしょう。
In order to analyze the buyer, it is important to think from a buyer.When performing such an analysis, be careful as it tends to be from a company perspective.
Seller negotiations
The wholesale price of beef is soaring, so the seller has a strong negotiating power.As long as the hamburger is pushed out as a specialty, you have to buy beef and respond to the seller's price.
In order to ensure the deliciousness of red meat, it is unlikely that the quality of the meat will be reduced, and soaring purchase prices will be a great risk.
The seller will also work to maximize the company's profits.Consider what to do to avoid the price of the seller.
Threat of new entry
New entry is a threat because the barriers of entry are low and hamburgers are popular.
There is a risk that a red meat hamburger can be imitated immediately.If you don't have a twist, you'll immediately put a similar product and lose your dominance.
The threat of new entry means that the market is attractive.Conversely, if you do not feel the threat of new entry despite the special reason, the market may be low.
Substitute threat
There are many cheap and delicious menus, such as beef bowl, curry, and ramen, so the threat of hamburger alternatives is strong.
The hamburger, which replaces the meat with soybeans, is also popular.If the beef price rises, there is a risk of replacing chicken and pork.
When considering the risk of alternatives, it is important to doubt not only whether you can beat the competition with the alternative, but also if your company's products and services are no longer needed, that is, the current common sense.
For example, until recently, there was a common sense that books were bought at bookstores.However, with the advent of Amazon and e -books, it has become a world where it is more convenient to buy books outside of bookstores.
Alternatively, always analyze the antenna and simulate effective measures.
Fiveforce analysis method / procedure まとめ
As a result of the Five Force Analysis, it seems effective to launch a characteristic of red meat hamburger, but it seems difficult to survive in the market with its characteristics alone.
It turns out that more reasons for customers, such as appearance, sauce seasoning, cost performance, etc., are necessary for customers.
There are many alternatives, so it is necessary to create a feature supported by customers.
It is also effective to collect customers' voices, such as what kind of hamburger you want to eat or what your impressions have actually been eaten.
It is a strategy for surviving to develop products that the market seeks based on customer voices, rather than their own commitment and beliefs.
Therefore, this time, it may be a good idea to consider the strategy of appealing the deliciousness of Wagyu hamburgers overseas at cross -border EC based on the analysis results that there are many domestic competition and many substitutes.
The cost is high by sticking to the material of Wagyu, but the needs of Japanese beef overseas are great.If you send it abroad, the expiration date will be a problem, but it will be easier to save by using a retort pack.This will allow you to stock your stock for a certain period of time.
By repeating the Five Force Analysis, a new winning line may be visible.In order to catch the changes in the market sensitively, repeat the Five Force Analysis repeatedly.
Precautions of Five Force (5 Force) analysis
It is a very effective Five Force Analysis for the external environment analysis and the company's strategic plans, but make sure that you have compiled three main cautions.
I will explain each.
Do not make hope for your company
The market where the company is entering and the market that is about to enter is easy to think of the company as an advantage.It is important not to eliminate such bias as much as possible and do not observe it.
If you do not look at the market calmly and objectively, you will not be able to perform accurate analysis.
1人で分析するのではなく、複数の人で脅威の洗い出しから行うと良いでしょう。できるだけ客観的で公平な目線で市場分析をしていきましょう。
Don't be too scared by the unknown threat
The threat of new entry and the threat of alternatives can be difficult to predict, and if you think about any possibilities, you will not be able to do anything.
Analysis of unknown threats is important, but all risks cannot be eliminated.
予測が難しい脅威については、残存リスクとして受け入れることも大切。未知の脅威に怯えすぎず、自社の強みを尖らせていきましょう。
Analysis will take measures that can be implemented without ending
ファイブフォース分析は分析することが目的ではありません。実行可能な対策を打ち出し、市場で勝ち残ることが目的です。
Analysis is not enough, but let's actually hypothesis in the market and consider further improvements.
The market is constantly changing, so let's regularly repeat the five force analysis and launch a new strategy.
People who are independent of entrepreneurship and those who launch a new business are the Five Force Analysis
People who are independent of entrepreneurs and those who launch a new business need a five force analysis.This is because if you enter the market without analyzing the external environment, you will be able to challenge the victory in the first place, or the market that has entered in a short period of time will decline.
Also, somewhere in the market, there may be a tailwind position for the company.By repeating analysis, you may be able to notice your strengths that other companies do not have.
Let's analyze the market firmly in entrepreneurship independence and new business launch.
また、起業独立や新規ビジネスの立ち上げにおいては、さまざまな手続きや準備が必要です。スタートダッシュでつまづかないためには、創業時のノウハウをまとめた『創業手帳』をチェックしておきましょう。If you are aiming for entrepreneurship independence, you can order it for free.
創業時はマーケティング以外にも考えなければいけないことがたくさんあります。『創業手帳』があれば、創業時に必要な情報がすべて手に入ります。
Summary Five Force Analysis
This time, in the marketing analysis, we explained the five force analysis specialized in analysis of the external environment.
Analysis of external environment is very important.If you analyze the external environment, you will be able to move on the ship at a stretch with a tailwind.It is also possible to avoid overturning in the storm of Misumi.Without analyzing the external environment, you can't grow or survive.
The external environment cannot be changed by our own power.Because it is an external environment where the company's power is far, a solid analysis is required.
For those who are entrepreneurship and those who launch a new business, let's do the Five Force Analysis well.
また、起業独立や新規事業の立ち上げには、さまざまな準備が必要です。ぜひ『創業手帳』も取り寄せておきましょう。関連記事【起業家向け】新規顧客開拓の5つの方法とは?事前にすべき3つの分析で効率アップ!KPIとは?KGIとの違いや起業独立にも大切な目標設定のコツを解説(Edit: Founding Handbook Editorial Department)
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