Psychiatric Care Bed Market Insights 2025, Analysis and Forecast to 2030, by Manufacturers, Regions, Technology, Application
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Introduction to the Psychiatric Care Bed Industry
Psychiatric care beds are specialized medical beds designed to ensure safety, comfort, and functionality for patients with mental health disorders in hospitals, home care settings, and elderly care facilities. These beds feature adjustable heights, secure restraint systems, and durable frames to accommodate the unique needs of psychiatric patients, such as those with depression, anxiety, or schizophrenia. The industry is driven by the global rise in mental health disorders, with the World Health Organization noting a 25% increase in depression and anxiety during the first year of the COVID-19 pandemic, adding to an existing billion people with mental disorders. Key components like hydraulic systems, safety rails, and pressure-relieving mattresses account for a significant portion of production costs. The market is moderately consolidated, with global leaders like Stryker and Hill-Rom competing alongside specialized players like ModuForm. Innovations focus on smart beds with integrated sensors for patient monitoring, ergonomic designs for caregiver efficiency, and modular systems for adaptability, as seen in Arjo’s 2023 launch of sensor-equipped psychiatric beds. The industry also benefits from evolving mental health policies, such as Italy’s 1978 Law 180, which shifted care from asylums to community-based facilities, increasing demand for versatile psychiatric beds in general hospitals and residential settings.
Market Size and Growth Forecast
The global psychiatric care bed market is projected to reach USD 1.2–1.5 billion by 2025, with an estimated compound annual growth rate (CAGR) of 5% to 7% through 2030. This growth is propelled by rising mental health awareness, aging populations, and investments in healthcare infrastructure.
Regional Analysis
Asia Pacific expects a growth rate of 6% to 8%. China and India drive demand due to increasing mental health initiatives and hospital expansions. Japan focuses on elderly psychiatric care, with companies like Paramount Bed advancing smart bed technologies.
North America anticipates a growth rate of 5% to 7%. The U.S. leads with high demand in psychiatric hospitals, supported by Stryker’s advanced bed solutions. Canada emphasizes community-based care, boosting home care bed adoption.
Europe projects a growth rate of 5% to 7%. Germany and the UK lead, with Hill-Rom innovating in sensor-integrated beds. Italy’s community care model, post-1978 reforms, drives demand for versatile beds, while France targets elderly care facilities.
South America expects a growth rate of 4% to 6%. Brazil’s mental health reforms spur hospital bed demand, though economic challenges limit growth. Argentina shows steady uptake in elderly care.
Middle East and Africa anticipate a growth rate of 3% to 5%. The UAE invests in modern psychiatric facilities, but limited infrastructure in Africa restricts adoption. South Africa sees moderate growth in urban hospitals.
Application Analysis
Hospitals: Projected at 5% to 7%, hospital psychiatric beds dominate due to acute care needs for severe mental disorders. Stryker leads with durable, sensor-equipped beds, with trends toward IoT integration for real-time patient monitoring.
Home Care Settings: Expected at 6% to 8%, home care beds are the fastest-growing segment, driven by community-based care models. Invacare offers lightweight, adjustable beds, with innovations focusing on patient comfort and caregiver accessibility.
Elderly Care Facilities: Anticipated at 5% to 7%, these facilities use beds for patients with dementia and other age-related mental disorders. Arjo provides modular beds, with trends toward pressure-relieving mattresses for long-term care.
Key Market Players
Stryker: A U.S. leader, Stryker offers advanced psychiatric beds with safety and monitoring features for hospitals.
Hill-Rom: A U.S. innovator, Hill-Rom develops ergonomic beds for mental health facilities, emphasizing patient comfort.
Arjo: A Swedish company, Arjo specializes in beds for elderly care, focusing on mobility and safety.
Invacare: A U.S. firm, Invacare provides home care psychiatric beds, prioritizing portability and affordability.
Linet: A Czech manufacturer, Linet offers hospital-grade psychiatric beds with advanced safety systems.
Stiegelmeyer: A German company, Stiegelmeyer develops durable beds for psychiatric and elderly care settings.
Sizewise (Agiliti): A U.S. provider, Sizewise offers specialized beds for behavioral health, enhanced by its 2021 acquisition.
ModuForm: A U.S. niche player, ModuForm focuses on tamper-resistant beds for mental health facilities.
Norix: A U.S. firm, Norix designs anti-ligature beds for high-risk psychiatric environments.
Porter’s Five Forces Analysis
●Threat of New Entrants: Moderate. High R&D and regulatory costs deter entry, but declining component costs enable niche players. Stryker’s brand dominance limits new entrants, though startups target home care segments.
●Threat of Substitutes: Low. Standard hospital beds lack psychiatric-specific features, giving Hill-Rom an edge. Manual care methods are impractical for severe cases, reducing substitution risks.
●Bargaining Power of Buyers: High. Hospitals and care facilities negotiate due to multiple suppliers. Arjo’s customization mitigates pressure, but price sensitivity in emerging markets persists.
●Bargaining Power of Suppliers: Moderate. Suppliers of hydraulic systems and sensors influence costs, impacting Invacare. Vertical integration by Linet reduces risks, but specialized components remain critical.
●Competitive Rivalry: High. Stryker, Hill-Rom, and Arjo compete on technology, safety, and scalability. Rising mental health demand and smart bed innovations drive R&D, intensifying rivalry.
Market Opportunities and Challenges
Opportunities
●Rising Mental Health Disorders: The global surge in psychiatric conditions, with over 1 billion affected, boosts Stryker’s hospital bed demand.
●Aging Population: Elderly care needs drive Arjo’s modular bed adoption.
●Technological Advancements: Smart beds with sensors enhance Hill-Rom’s offerings, aligning with digital health trends.
●Community Care Models: Italy’s post-1978 shift to community care favors Invacare’s home care beds.
●Emerging Markets: India’s mental health reforms offer Linet expansion potential.
●Policy Support: Government funding for mental health infrastructure supports Stryker’s growth.
●Sustainability Trends: Eco-friendly materials align with Arjo’s innovation goals.
Challenges
●High Production Costs: Advanced features pressure Hill-Rom’s margins.
●Regulatory Compliance: Strict safety standards increase Stryker’s costs.
●Caregiver Resistance: Automation fears hinder Invacare’s adoption in some regions.
●Supply Chain Disruptions: Component shortages impact Linet’s production.
●Data Privacy Concerns: Smart bed sensors raise issues, affecting Arjo’s trust.
●Talent Shortages: Specialized R&D skills limit Hill-Rom’s innovation pace.
●Economic Volatility: Uncertainty in emerging markets challenges Stryker’s expansion.
Chapter 1 Executive Summary
Chapter 2 Abbreviation and Acronyms
Chapter 3 Preface
3.1 Research Scope
3.2 Research Sources
3.2.1 Data Sources
3.2.2 Assumptions
3.3 Research Method
Chapter 4 Market Landscape
4.1 Market Overview
4.2 Classification/Types
4.3 Application/End Users
Chapter 5 Market Trend Analysis
5.1 Introduction
5.2 Drivers
5.3 Restraints
5.4 Opportunities
5.5 Threats
Chapter 6 Industry Chain Analysis
6.1 Upstream/Suppliers Analysis
6.2 Psychiatric Care Bed Analysis
6.2.1 Technology Analysis
6.2.2 Cost Analysis
6.2.3 Market Channel Analysis
6.3 Downstream Buyers/End Users
Chapter 7 Latest Market Dynamics
7.1 Latest News
7.2 Merger and Acquisition
7.3 Planned/Future Project
7.4 Policy Dynamics
Chapter 8 Trading Analysis
8.1 Export of Psychiatric Care Bed by Region
8.2 Import of Psychiatric Care Bed by Region
8.3 Balance of Trade
Chapter 9 Historical and Forecast Psychiatric Care Bed Market in North America (2020-2030)
9.1 Psychiatric Care Bed Market Size
9.2 Psychiatric Care Bed Demand by End Use
9.3 Competition by Players/Suppliers
9.4 Type Segmentation and Price
9.5 Key Countries Analysis
9.5.1 United States
9.5.2 Canada
9.5.3 Mexico
Chapter 10 Historical and Forecast Psychiatric Care Bed Market in South America (2020-2030)
10.1 Psychiatric Care Bed Market Size
10.2 Psychiatric Care Bed Demand by End Use
10.3 Competition by Players/Suppliers
10.4 Type Segmentation and Price
10.5 Key Countries Analysis
10.5.1 Brazil
10.5.2 Argentina
10.5.3 Chile
10.5.4 Peru
Chapter 11 Historical and Forecast Psychiatric Care Bed Market in Asia & Pacific (2020-2030)
11.1 Psychiatric Care Bed Market Size
11.2 Psychiatric Care Bed Demand by End Use
11.3 Competition by Players/Suppliers
11.4 Type Segmentation and Price
11.5 Key Countries Analysis
11.5.1 China
11.5.2 India
11.5.3 Japan
11.5.4 South Korea
11.5.5 Southest Asia
11.5.6 Australia
Chapter 12 Historical and Forecast Psychiatric Care Bed Market in Europe (2020-2030)
12.1 Psychiatric Care Bed Market Size
12.2 Psychiatric Care Bed Demand by End Use
12.3 Competition by Players/Suppliers
12.4 Type Segmentation and Price
12.5 Key Countries Analysis
12.5.1 Germany
12.5.2 France
12.5.3 United Kingdom
12.5.4 Italy
12.5.5 Spain
12.5.6 Belgium
12.5.7 Netherlands
12.5.8 Austria
12.5.9 Poland
12.5.10 Russia
Chapter 13 Historical and Forecast Psychiatric Care Bed Market in MEA (2020-2030)
13.1 Psychiatric Care Bed Market Size
13.2 Psychiatric Care Bed Demand by End Use
13.3 Competition by Players/Suppliers
13.4 Type Segmentation and Price
13.5 Key Countries Analysis
13.5.1 Egypt
13.5.2 Israel
13.5.3 South Africa
13.5.4 Gulf Cooperation Council Countries
13.5.5 Turkey
Chapter 14 Summary For Global Psychiatric Care Bed Market (2020-2025)
14.1 Psychiatric Care Bed Market Size
14.2 Psychiatric Care Bed Demand by End Use
14.3 Competition by Players/Suppliers
14.4 Type Segmentation and Price
Chapter 15 Global Psychiatric Care Bed Market Forecast (2025-2030)
15.1 Psychiatric Care Bed Market Size Forecast
15.2 Psychiatric Care Bed Demand Forecast
15.3 Competition by Players/Suppliers
15.4 Type Segmentation and Price Forecast
Chapter 16 Analysis of Global Key Vendors
15.1 Stryker
15.1.1 Company Profile
15.1.2 Main Business and Psychiatric Care Bed Information
15.1.3 SWOT Analysis of Stryker
15.1.4 Stryker Psychiatric Care Bed Sales, Revenue, Price and Gross Margin (2020-2025)
15.2 Hill-Rom
15.2.1 Company Profile
15.2.2 Main Business and Psychiatric Care Bed Information
15.2.3 SWOT Analysis of Hill-Rom
15.2.4 Hill-Rom Psychiatric Care Bed Sales, Revenue, Price and Gross Margin (2020-2025)
15.3 Arjo
15.3.1 Company Profile
15.3.2 Main Business and Psychiatric Care Bed Information
15.3.3 SWOT Analysis of Arjo
15.3.4 Arjo Psychiatric Care Bed Sales, Revenue, Price and Gross Margin (2020-2025)
15.4 Invacare
15.4.1 Company Profile
15.4.2 Main Business and Psychiatric Care Bed Information
15.4.3 SWOT Analysis of Invacare
15.4.4 Invacare Psychiatric Care Bed Sales, Revenue, Price and Gross Margin (2020-2025)
15.5 Linet
15.5.1 Company Profile
15.5.2 Main Business and Psychiatric Care Bed Information
15.5.3 SWOT Analysis of Linet
15.5.4 Linet Psychiatric Care Bed Sales, Revenue, Price and Gross Margin (2020-2025)
15.6 Stiegelmeyer
15.6.1 Company Profile
15.6.2 Main Business and Psychiatric Care Bed Information
15.6.3 SWOT Analysis of Stiegelmeyer
15.6.4 Stiegelmeyer Psychiatric Care Bed Sales, Revenue, Price and Gross Margin (2020-2025)
Please ask for sample pages for full companies list
Table Research Scope Of Psychiatric Care Bed Report
Table Data Sources Of Psychiatric Care Bed Report
Table Major Assumptions Of Psychiatric Care Bed Report
Table Psychiatric Care Bed Classification
Table Psychiatric Care Bed Applications List
Table Drivers Of Psychiatric Care Bed Market
Table Restraints Of Psychiatric Care Bed Market
Table Opportunities Of Psychiatric Care Bed Market
Table Threats Of Psychiatric Care Bed Market
Table Raw Materials Suppliers List
Table Different Production Methods Of Psychiatric Care Bed
Table Cost Structure Analysis Of Psychiatric Care Bed
Table Key End Users List
Table Latest News Of Psychiatric Care Bed Market
Table Merger And Acquisition List
Table Planned/Future Project Of Psychiatric Care Bed Market
Table Policy Of Psychiatric Care Bed Market
Table 2020-2030 Regional Export Of Psychiatric Care Bed
Table 2020-2030 Regional Import Of Psychiatric Care Bed
Table 2020-2030 Regional Trade Balance
Table 2020-2030 North America Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 North America Psychiatric Care Bed Demand List By Application
Table 2020-2025 North America Psychiatric Care Bed Key Players Sales List
Table 2020-2025 North America Psychiatric Care Bed Key Players Market Share List
Table 2020-2030 North America Psychiatric Care Bed Demand List By Type
Table 2020-2025 North America Psychiatric Care Bed Price List By Type
Table 2020-2030 United States Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 United States Psychiatric Care Bed Import & Export List
Table 2020-2030 Canada Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Canada Psychiatric Care Bed Import & Export List
Table 2020-2030 Mexico Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Mexico Psychiatric Care Bed Import & Export List
Table 2020-2030 South America Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 South America Psychiatric Care Bed Demand List By Application
Table 2020-2025 South America Psychiatric Care Bed Key Players Sales List
Table 2020-2025 South America Psychiatric Care Bed Key Players Market Share List
Table 2020-2030 South America Psychiatric Care Bed Demand List By Type
Table 2020-2025 South America Psychiatric Care Bed Price List By Type
Table 2020-2030 Brazil Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Brazil Psychiatric Care Bed Import & Export List
Table 2020-2030 Argentina Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Argentina Psychiatric Care Bed Import & Export List
Table 2020-2030 Chile Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Chile Psychiatric Care Bed Import & Export List
Table 2020-2030 Peru Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Peru Psychiatric Care Bed Import & Export List
Table 2020-2030 Asia & Pacific Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Asia & Pacific Psychiatric Care Bed Demand List By Application
Table 2020-2025 Asia & Pacific Psychiatric Care Bed Key Players Sales List
Table 2020-2025 Asia & Pacific Psychiatric Care Bed Key Players Market Share List
Table 2020-2030 Asia & Pacific Psychiatric Care Bed Demand List By Type
Table 2020-2025 Asia & Pacific Psychiatric Care Bed Price List By Type
Table 2020-2030 China Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 China Psychiatric Care Bed Import & Export List
Table 2020-2030 India Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 India Psychiatric Care Bed Import & Export List
Table 2020-2030 Japan Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Japan Psychiatric Care Bed Import & Export List
Table 2020-2030 South Korea Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 South Korea Psychiatric Care Bed Import & Export List
Table 2020-2030 Southeast Asia Psychiatric Care Bed Market Size List
Table 2020-2030 Southeast Asia Psychiatric Care Bed Market Volume List
Table 2020-2030 Southeast Asia Psychiatric Care Bed Import List
Table 2020-2030 Southeast Asia Psychiatric Care Bed Export List
Table 2020-2030 Australia Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Australia Psychiatric Care Bed Import & Export List
Table 2020-2030 Europe Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Europe Psychiatric Care Bed Demand List By Application
Table 2020-2025 Europe Psychiatric Care Bed Key Players Sales List
Table 2020-2025 Europe Psychiatric Care Bed Key Players Market Share List
Table 2020-2030 Europe Psychiatric Care Bed Demand List By Type
Table 2020-2025 Europe Psychiatric Care Bed Price List By Type
Table 2020-2030 Germany Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Germany Psychiatric Care Bed Import & Export List
Table 2020-2030 France Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 France Psychiatric Care Bed Import & Export List
Table 2020-2030 United Kingdom Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 United Kingdom Psychiatric Care Bed Import & Export List
Table 2020-2030 Italy Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Italy Psychiatric Care Bed Import & Export List
Table 2020-2030 Spain Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Spain Psychiatric Care Bed Import & Export List
Table 2020-2030 Belgium Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Belgium Psychiatric Care Bed Import & Export List
Table 2020-2030 Netherlands Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Netherlands Psychiatric Care Bed Import & Export List
Table 2020-2030 Austria Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Austria Psychiatric Care Bed Import & Export List
Table 2020-2030 Poland Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Poland Psychiatric Care Bed Import & Export List
Table 2020-2030 Russia Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Russia Psychiatric Care Bed Import & Export List
Table 2020-2030 Mea Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Mea Psychiatric Care Bed Demand List By Application
Table 2020-2025 Mea Psychiatric Care Bed Key Players Sales List
Table 2020-2025 Mea Psychiatric Care Bed Key Players Market Share List
Table 2020-2030 Mea Psychiatric Care Bed Demand List By Type
Table 2020-2025 Mea Psychiatric Care Bed Price List By Type
Table 2020-2030 Egypt Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Egypt Psychiatric Care Bed Import & Export List
Table 2020-2030 Israel Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Israel Psychiatric Care Bed Import & Export List
Table 2020-2030 South Africa Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 South Africa Psychiatric Care Bed Import & Export List
Table 2020-2030 Gulf Cooperation Council Countries Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Gulf Cooperation Council Countries Psychiatric Care Bed Import & Export List
Table 2020-2030 Turkey Psychiatric Care Bed Market Size And Market Volume List
Table 2020-2030 Turkey Psychiatric Care Bed Import & Export List
Table 2020-2025 Global Psychiatric Care Bed Market Size List By Region
Table 2020-2025 Global Psychiatric Care Bed Market Size Share List By Region
Table 2020-2025 Global Psychiatric Care Bed Market Volume List By Region
Table 2020-2025 Global Psychiatric Care Bed Market Volume Share List By Region
Table 2020-2025 Global Psychiatric Care Bed Demand List By Application
Table 2020-2025 Global Psychiatric Care Bed Demand Market Share List By Application
Table 2020-2025 Global Psychiatric Care Bed Key Vendors Sales List
Table 2020-2025 Global Psychiatric Care Bed Key Vendors Sales Share List
Table 2020-2025 Global Psychiatric Care Bed Key Vendors Revenue List
Table 2020-2025 Global Psychiatric Care Bed Key Vendors Revenue Share List
Table 2020-2025 Global Psychiatric Care Bed Demand List By Type
Table 2020-2025 Global Psychiatric Care Bed Demand Market Share List By Type
Table 2020-2025 Regional Psychiatric Care Bed Price List
Table 2025-2030 Global Psychiatric Care Bed Market Size List By Region
Table 2025-2030 Global Psychiatric Care Bed Market Size Share List By Region
Table 2025-2030 Global Psychiatric Care Bed Market Volume List By Region
Table 2025-2030 Global Psychiatric Care Bed Market Volume Share List By Region
Table 2025-2030 Global Psychiatric Care Bed Demand List By Application
Table 2025-2030 Global Psychiatric Care Bed Demand Market Share List By Application
Table 2025-2030 Global Psychiatric Care Bed Key Vendors Sales List
Table 2025-2030 Global Psychiatric Care Bed Key Vendors Sales Share List
Table 2025-2030 Global Psychiatric Care Bed Key Vendors Revenue List
Table 2025-2030 Global Psychiatric Care Bed Key Vendors Revenue Share List
Table 2025-2030 Global Psychiatric Care Bed Demand List By Type
Table 2025-2030 Global Psychiatric Care Bed Demand Market Share List By Type
Table 2025-2030 Psychiatric Care Bed Regional Price List
Figure Market Size Estimated Method
Figure Major Forecasting Factors
Figure Psychiatric Care Bed Picture
Figure 2020-2030 Regional Trade Balance
Figure 2020-2030 North America Psychiatric Care Bed Market Size And Cagr
Figure 2020-2030 North America Psychiatric Care Bed Market Volume And Cagr
Figure 2020-2030 South America Psychiatric Care Bed Market Size And Cagr
Figure 2020-2030 South America Psychiatric Care Bed Market Volume And Cagr
Figure 2020-2030 Asia & Pacific Psychiatric Care Bed Market Size And Cagr
Figure 2020-2030 Asia & Pacific Psychiatric Care Bed Market Volume And Cagr
Figure 2020-2030 Europe Psychiatric Care Bed Market Size And Cagr
Figure 2020-2030 Europe Psychiatric Care Bed Market Volume And Cagr
Figure 2020-2030 Mea Psychiatric Care Bed Market Size And Cagr
Figure 2020-2030 Mea Psychiatric Care Bed Market Volume And Cagr
Figure 2020-2025 Global Psychiatric Care Bed Market Volume And Growth Rate
Figure 2020-2025 Global Psychiatric Care Bed Market Size And Growth Rate
Figure 2025-2030 Global Psychiatric Care Bed Market Volume And Growth Rate
Figure 2025-2030 Global Psychiatric Care Bed Market Size And Growth Rate
Research Methodology
- Market Estimated Methodology:
Bottom-up & top-down approach, supply & demand approach are the most important method which is used by HDIN Research to estimate the market size.
1)Top-down & Bottom-up Approach
Top-down approach uses a general market size figure and determines the percentage that the objective market represents.
Bottom-up approach size the objective market by collecting the sub-segment information.
2)Supply & Demand Approach
Supply approach is based on assessments of the size of each competitor supplying the objective market.
Demand approach combine end-user data within a market to estimate the objective market size. It is sometimes referred to as bottom-up approach.
- Forecasting Methodology
- Numerous factors impacting the market trend are considered for forecast model:
- New technology and application in the future;
- New project planned/under contraction;
- Global and regional underlying economic growth;
- Threatens of substitute products;
- Industry expert opinion;
- Policy and Society implication.
- Analysis Tools
1)PEST Analysis
PEST Analysis is a simple and widely used tool that helps our client analyze the Political, Economic, Socio-Cultural, and Technological changes in their business environment.
- Benefits of a PEST analysis:
- It helps you to spot business opportunities, and it gives you advanced warning of significant threats.
- It reveals the direction of change within your business environment. This helps you shape what you’re doing, so that you work with change, rather than against it.
- It helps you avoid starting projects that are likely to fail, for reasons beyond your control.
- It can help you break free of unconscious assumptions when you enter a new country, region, or market; because it helps you develop an objective view of this new environment.
2)Porter’s Five Force Model Analysis
The Porter’s Five Force Model is a tool that can be used to analyze the opportunities and overall competitive advantage. The five forces that can assist in determining the competitive intensity and potential attractiveness within a specific area.
- Threat of New Entrants: Profitable industries that yield high returns will attract new firms.
- Threat of Substitutes: A substitute product uses a different technology to try to solve the same economic need.
- Bargaining Power of Customers: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes.
- Bargaining Power of Suppliers: Suppliers of raw materials, components, labor, and services (such as expertise) to the firm can be a source of power over the firm when there are few substitutes.
- Competitive Rivalry: For most industries the intensity of competitive rivalry is the major determinant of the competitiveness of the industry.
3)Value Chain Analysis
Value chain analysis is a tool to identify activities, within and around the firm and relating these activities to an assessment of competitive strength. Value chain can be analyzed by primary activities and supportive activities. Primary activities include: inbound logistics, operations, outbound logistics, marketing & sales, service. Support activities include: technology development, human resource management, management, finance, legal, planning.
4)SWOT Analysis
SWOT analysis is a tool used to evaluate a company's competitive position by identifying its strengths, weaknesses, opportunities and threats. The strengths and weakness is the inner factor; the opportunities and threats are the external factor. By analyzing the inner and external factors, the analysis can provide the detail information of the position of a player and the characteristics of the industry.
- Strengths describe what the player excels at and separates it from the competition
- Weaknesses stop the player from performing at its optimum level.
- Opportunities refer to favorable external factors that the player can use to give it a competitive advantage.
- Threats refer to factors that have the potential to harm the player.
- Data Sources
Primary Sources | Secondary Sources |
---|---|
Face to face/Phone Interviews with market participants, such as: Manufactures; Distributors; End-users; Experts. Online Survey |
Government/International Organization Data: Annual Report/Presentation/Fact Book Internet Source Information Industry Association Data Free/Purchased Database Market Research Report Book/Journal/News |