Competitors Framework of Porter’s Five Forces, give overall views on industry analysis for Speeds I-J competitive market. Threat of new entrants is at minimum and even if there are, they are less likely to form threats to Speeds. As Threat of substitutes, hardly any form of substitute can be consider for swimwear. For both bargaining power of suppliers and buyers, Speeds is a big and strong brand in the market but must aware of customers’ price sensitivity and affected by low switching cost.
The real threats will be from its existing market competitor rivals like Arena, TRY, Nikkei and Aids. Strong Rivalry in Competitive Markets Arena and TRY swimwear is strongest rival among competitive markets with both having their own history and technology swim suits (refer to appendix). Price difference is low but Speeds still emerge as top. With such close rivalry, maintaining or gaining markets share will be tightly link with company’s performance in all areas like technology, marketing strategy and analyzing of trend changes.
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Other Rivalry Nikkei and Aids are not really excel in producing swimwear but their strong brand names affect buyer’s behavior. Nikkei however, do have a competitive suit name Lifts series for professional users while Aids doesn’t have any particular competitive swimwear series. Nikkei and Aids more likely to stay strong in common swimwear market and tend to lose out in high-end competitive swimwear market. Issue for Competitors 1) Some categories of customers whose needs are not being met. ) Markets is already saturated, avoid costly mistakes. 3) Observing the actions of competitors and market. Key Issues Opportunities created by learning to observe competitors carefully. Objective share shifting in order to maintain as a strong leader in swimwear industry. Reasons for being key issue and proposed strategies Companies that want to challenge and gain market share will always innovated their products, selling points, selling strategies or even change the trends of the market to their company’s advantage.
Knowing why the rival companies react or using different market strategy in a particular way/timing, give information on what the current markets’ need. Recommendation Frequent competitors’ profiling on backgrounds, financial, products, marketing strategy, facilities, personnel and corporate strategies is important. Example when a company succeed by offer reduction of prices during a particular seasons or event of the year, this market tell us some information about markets’ spending habits, trend shifting or preference.