Industrial Racking System Market Insights 2025, Analysis and Forecast to 2030, by Manufacturers, Regions, Technology, Application
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Introduction to the Industrial Racking System Industry
Industrial racking systems are heavy-duty storage solutions, typically made of steel, designed to optimize warehouse space and streamline logistics. These systems, including pallet racking and automated storage, are critical in industries like retail, manufacturing, and pharmaceuticals, supporting efficient inventory management and supply chain operations. The industry is undergoing a transformation driven by smart warehousing technologies, shifting from static equipment to intelligent, interconnected systems integrated with IoT, AI, and automation. This evolution enhances storage density, retrieval speed, and operational synergy. The market benefits from global e-commerce growth, urbanization, and the need for sustainable logistics, though high installation costs and customization challenges persist. The industry is moderately fragmented, with key players investing in modular designs and digital integration to meet diverse sectoral needs.
Market Size and Growth Forecast
The global industrial racking system market is projected to reach USD 12.0 billion to USD 13.0 billion by 2025, with an estimated compound annual growth rate (CAGR) of 5% to 6% through 2030, driven by e-commerce, automation, and warehousing expansion.
Regional Analysis
North America holds a market share of 30% to 35%, with a growth rate of 4% to 5%. The U.S. leads due to e-commerce and retail warehousing, with Canada supporting manufacturing demand.
Asia Pacific accounts for 35% to 40%, with a growth rate of 6% to 7%. China’s logistics boom and India’s e-commerce growth drive demand. Japan focuses on automated racking.
Europe represents 25% to 30%, with a growth rate of 5% to 6%. Germany and the UK lead in manufacturing and retail, with Scandinavia emphasizing smart warehousing.
South America holds 3% to 5%, with a growth rate of 3% to 4%. Brazil’s retail sector supports growth, though economic constraints limit scalability.
Middle East and Africa account for 2% to 3%, with a growth rate of 2% to 3%. The UAE invests in logistics hubs, but infrastructural challenges hinder growth.
Application Analysis
Retail: Projected at 5% to 6%, retail dominates due to e-commerce warehousing needs. Kardex’s automated systems lead in inventory efficiency.
Manufacturing: Expected at 5% to 6%, manufacturing leverages racking for raw material storage. Daifuku’s solutions enhance production workflows.
Packaging: Anticipated at 4% to 5%, packaging benefits from modular racking. SSI Schaefer’s systems support high-throughput operations.
Food and Beverages: Projected at 5% to 6%, this sector requires hygienic racking. Steel King’s solutions target cold storage.
Pharmaceuticals: Expected at 6% to 7%, pharmaceuticals demand precise inventory control. Interlake Mecalux’s systems ensure compliance.
Others: Anticipated at 3% to 4%, niche applications like logistics grow steadily, with Ridg-U-Rak targeting specialized needs.
Key Market Players
Kardex: A Swiss leader, Kardex develops automated racking for retail and manufacturing.
Daifuku Co. Ltd: A Japanese giant, Daifuku offers smart racking for logistics.
Velca Racking Systems Pvt. Ltd.: An Indian firm, Velca produces racking for warehousing.
Toyota Forklifts: A Japanese company, Toyota develops racking for manufacturing.
SSI Schaefer: A German innovator, SSI Schaefer focuses on IoT-integrated racking.
Universal Storage Systems (SA) Ltd: A South African firm, Universal offers racking for retail.
Steel King: A U.S. company, Steel King produces automated racking for logistics.
Racks Industries Limited: An Indian firm, Racks Industries focuses on manufacturing racking.
Bulldog Rack: A U.S. company, Bulldog develops heavy-duty racking for warehouses.
Ridg-U-Rak: A U.S. firm, Ridg-U-Rak offers racking for retail and food sectors.
Interlake Mecalux: A U.S. company, Interlake Mecalux focuses on pharma racking.
Frazier Industrial Company: A U.S. firm, Frazier produces racking for e-commerce.
Redirack: A Canadian company, Redirack develops racking for manufacturing.
North American Steel: A Canadian firm, North American Steel focuses on industrial racking.
Porter’s Five Forces Analysis
●Threat of New Entrants: Moderate. High capital costs and technical expertise deter entry, but modular designs lower barriers. Kardex’s scale limits new players.
●Threat of Substitutes: Low. Alternative storage solutions lack racking’s efficiency, giving Daifuku an edge. Manual storage poses a minor threat.
●Bargaining Power of Buyers: High. Retail and manufacturing clients negotiate due to multiple suppliers. Long-term contracts stabilize demand for SSI Schaefer, but buyers demand customization.
●Bargaining Power of Suppliers: Moderate. Steel suppliers influence costs, but diversified sourcing by Steel King mitigates risks.
●Competitive Rivalry: High. Kardex, Daifuku, and SSI Schaefer compete on automation, pricing, and scalability. Rapid smart warehousing trends drive R&D, intensifying rivalry.
Market Opportunities and Challenges
Opportunities
●E-commerce Growth: Retail warehousing boosts demand for Kardex’s automated systems.
●Smart Warehousing: Daifuku’s IoT-integrated racking enhances efficiency.
●Urbanization: Compact racking supports SSI Schaefer’s growth in Asia.
●Sustainability: Steel King’s recyclable systems align with eco-trends.
●Emerging Markets: India’s logistics boom offers growth for Interlake Mecalux.
●Customization: Frazier’s tailored solutions meet niche needs.
●Automation Adoption: Kardex’s AI-driven systems streamline operations.
Challenges
●High Installation Costs: Capital intensity pressures Kardex’s adoption.
●Customization Complexity: Diverse needs challenge Daifuku’s scalability.
●Economic Volatility: Brazil’s instability impacts SSI Schaefer’s growth.
●Raw Material Costs: Steel price fluctuations affect Steel King’s margins.
●Regulatory Compliance: Safety standards increase costs for Interlake Mecalux.
●Technology Integration: Legacy systems hinder Frazier’s smart racking adoption.
●Talent Shortages: Automation expertise limits Kardex’s innovation.
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 Industrial Racking System 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 Industrial Racking System by Region
8.2 Import of Industrial Racking System by Region
8.3 Balance of Trade
Chapter 9 Historical and Forecast Industrial Racking System Market in North America (2020-2030)
9.1 Industrial Racking System Market Size
9.2 Industrial Racking System 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 Industrial Racking System Market in South America (2020-2030)
10.1 Industrial Racking System Market Size
10.2 Industrial Racking System 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 Industrial Racking System Market in Asia & Pacific (2020-2030)
11.1 Industrial Racking System Market Size
11.2 Industrial Racking System 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 Asean
11.5.6 Australia
Chapter 12 Historical and Forecast Industrial Racking System Market in Europe (2020-2030)
12.1 Industrial Racking System Market Size
12.2 Industrial Racking System 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 Industrial Racking System Market in MEA (2020-2030)
13.1 Industrial Racking System Market Size
13.2 Industrial Racking System 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 Industrial Racking System Market (2020-2030)
14.1 Industrial Racking System Market Size
14.2 Industrial Racking System Demand by End Use
14.3 Competition by Players/Suppliers
14.4 Type Segmentation and Price
Chapter 15 Global Industrial Racking System Market Forecast (2021-2026)
15.1 Industrial Racking System Market Size Forecast
15.2 Industrial Racking System Demand Forecast
15.3 Competition by Players/Suppliers
15.4 Type Segmentation and Price Forecast
Chapter 16 Analysis of Global Key Vendors
15.1 Kardex
15.1.1 Company Profile
15.1.2 Main Business and Industrial Racking System Information
15.1.3 SWOT Analysis of Kardex
15.1.4 Kardex Industrial Racking System Sales, Revenue, Price and Gross Margin (2020-2025)
15.2 Daifuku Co.Ltd
15.2.1 Company Profile
15.2.2 Main Business and Industrial Racking System Information
15.2.3 SWOT Analysis of Daifuku Co.Ltd
15.2.4 Daifuku Co.Ltd Industrial Racking System Sales, Revenue, Price and Gross Margin (2020-2025)
15.3 Velca Racking Systems Pvt. Ltd.
15.3.1 Company Profile
15.3.2 Main Business and Industrial Racking System Information
15.3.3 SWOT Analysis of Velca Racking Systems Pvt. Ltd.
15.3.4 Velca Racking Systems Pvt. Ltd. Industrial Racking System Sales, Revenue, Price and Gross Margin (2020-2025)
15.4 Toyota Forklifts
15.4.1 Company Profile
15.4.2 Main Business and Industrial Racking System Information
15.4.3 SWOT Analysis of Toyota Forklifts
15.4.4 Toyota Forklifts Industrial Racking System Sales, Revenue, Price and Gross Margin (2020-2025)
15.5 SSI Schaefer
15.5.1 Company Profile
15.5.2 Main Business and Industrial Racking System Information
15.5.3 SWOT Analysis of SSI Schaefer
15.5.4 SSI Schaefer Industrial Racking System Sales, Revenue, Price and Gross Margin (2020-2025)
15.6 Universal Storage Systems (SA) Ltd
15.6.1 Company Profile
15.6.2 Main Business and Industrial Racking System Information
15.6.3 SWOT Analysis of Universal Storage Systems (SA) Ltd
15.6.4 Universal Storage Systems (SA) Ltd Industrial Racking System Sales, Revenue, Price and Gross Margin (2020-2025)
15.7 Steel King
15.7.1 Company Profile
15.7.2 Main Business and Industrial Racking System Information
15.7.3 SWOT Analysis of Steel King
15.7.4 Steel King Industrial Racking System Sales, Revenue, Price and Gross Margin (2020-2025)
15.8 Racks Industries Limited
15.8.1 Company Profile
15.8.2 Main Business and Industrial Racking System Information
15.8.3 SWOT Analysis of Racks Industries Limited
15.8.4 Racks Industries Limited Industrial Racking System Sales, Revenue, Price and Gross Margin (2020-2025)
15.9 Bulldog Rack
15.9.1 Company Profile
15.9.2 Main Business and Industrial Racking System Information
15.9.3 SWOT Analysis of Bulldog Rack
15.9.4 Bulldog Rack Industrial Racking System Sales, Revenue, Price and Gross Margin (2020-2025)
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Table Research Scope Of Industrial Racking System Report
Table Data Sources Of Industrial Racking System Report
Table Major Assumptions Of Industrial Racking System Report
Table Industrial Racking System Classification
Table Industrial Racking System Applications List
Table Drivers Of Industrial Racking System Market
Table Restraints Of Industrial Racking System Market
Table Opportunities Of Industrial Racking System Market
Table Threats Of Industrial Racking System Market
Table Raw Materials Suppliers List
Table Different Production Methods Of Industrial Racking System
Table Cost Structure Analysis Of Industrial Racking System
Table Key End Users List
Table Latest News Of Industrial Racking System Market
Table Merger And Acquisition List
Table Planned/Future Project Of Industrial Racking System Market
Table Policy Of Industrial Racking System Market
Table 2020-2030 Regional Export Of Industrial Racking System
Table 2020-2030 Regional Import Of Industrial Racking System
Table 2020-2030 Regional Trade Balance
Table 2020-2030 North America Industrial Racking System Market Size And Market Volume List
Table 2020-2030 North America Industrial Racking System Demand List By Application
Table 2020-2025 North America Industrial Racking System Key Players Sales List
Table 2020-2025 North America Industrial Racking System Key Players Market Share List
Table 2020-2030 North America Industrial Racking System Demand List By Type
Table 2020-2025 North America Industrial Racking System Price List By Type
Table 2020-2030 United States Industrial Racking System Market Size And Market Volume List
Table 2020-2030 United States Industrial Racking System Import & Export List
Table 2020-2030 Canada Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Canada Industrial Racking System Import & Export List
Table 2020-2030 Mexico Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Mexico Industrial Racking System Import & Export List
Table 2020-2030 South America Industrial Racking System Market Size And Market Volume List
Table 2020-2030 South America Industrial Racking System Demand List By Application
Table 2020-2025 South America Industrial Racking System Key Players Sales List
Table 2020-2025 South America Industrial Racking System Key Players Market Share List
Table 2020-2030 South America Industrial Racking System Demand List By Type
Table 2020-2025 South America Industrial Racking System Price List By Type
Table 2020-2030 Brazil Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Brazil Industrial Racking System Import & Export List
Table 2020-2030 Argentina Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Argentina Industrial Racking System Import & Export List
Table 2020-2030 Chile Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Chile Industrial Racking System Import & Export List
Table 2020-2030 Peru Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Peru Industrial Racking System Import & Export List
Table 2020-2030 Asia & Pacific Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Asia & Pacific Industrial Racking System Demand List By Application
Table 2020-2025 Asia & Pacific Industrial Racking System Key Players Sales List
Table 2020-2025 Asia & Pacific Industrial Racking System Key Players Market Share List
Table 2020-2030 Asia & Pacific Industrial Racking System Demand List By Type
Table 2020-2025 Asia & Pacific Industrial Racking System Price List By Type
Table 2020-2030 China Industrial Racking System Market Size And Market Volume List
Table 2020-2030 China Industrial Racking System Import & Export List
Table 2020-2030 India Industrial Racking System Market Size And Market Volume List
Table 2020-2030 India Industrial Racking System Import & Export List
Table 2020-2030 Japan Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Japan Industrial Racking System Import & Export List
Table 2020-2030 South Korea Industrial Racking System Market Size And Market Volume List
Table 2020-2030 South Korea Industrial Racking System Import & Export List
Table 2020-2030 Southeast Asia Industrial Racking System Market Size List
Table 2020-2030 Southeast Asia Industrial Racking System Market Volume List
Table 2020-2030 Southeast Asia Industrial Racking System Import List
Table 2020-2030 Southeast Asia Industrial Racking System Export List
Table 2020-2030 Australia Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Australia Industrial Racking System Import & Export List
Table 2020-2030 Europe Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Europe Industrial Racking System Demand List By Application
Table 2020-2025 Europe Industrial Racking System Key Players Sales List
Table 2020-2025 Europe Industrial Racking System Key Players Market Share List
Table 2020-2030 Europe Industrial Racking System Demand List By Type
Table 2020-2025 Europe Industrial Racking System Price List By Type
Table 2020-2030 Germany Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Germany Industrial Racking System Import & Export List
Table 2020-2030 France Industrial Racking System Market Size And Market Volume List
Table 2020-2030 France Industrial Racking System Import & Export List
Table 2020-2030 United Kingdom Industrial Racking System Market Size And Market Volume List
Table 2020-2030 United Kingdom Industrial Racking System Import & Export List
Table 2020-2030 Italy Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Italy Industrial Racking System Import & Export List
Table 2020-2030 Spain Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Spain Industrial Racking System Import & Export List
Table 2020-2030 Belgium Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Belgium Industrial Racking System Import & Export List
Table 2020-2030 Netherlands Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Netherlands Industrial Racking System Import & Export List
Table 2020-2030 Austria Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Austria Industrial Racking System Import & Export List
Table 2020-2030 Poland Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Poland Industrial Racking System Import & Export List
Table 2020-2030 Russia Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Russia Industrial Racking System Import & Export List
Table 2020-2030 Mea Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Mea Industrial Racking System Demand List By Application
Table 2020-2025 Mea Industrial Racking System Key Players Sales List
Table 2020-2025 Mea Industrial Racking System Key Players Market Share List
Table 2020-2030 Mea Industrial Racking System Demand List By Type
Table 2020-2025 Mea Industrial Racking System Price List By Type
Table 2020-2030 Egypt Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Egypt Industrial Racking System Import & Export List
Table 2020-2030 Israel Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Israel Industrial Racking System Import & Export List
Table 2020-2030 South Africa Industrial Racking System Market Size And Market Volume List
Table 2020-2030 South Africa Industrial Racking System Import & Export List
Table 2020-2030 Gulf Cooperation Council Countries Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Gulf Cooperation Council Countries Industrial Racking System Import & Export List
Table 2020-2030 Turkey Industrial Racking System Market Size And Market Volume List
Table 2020-2030 Turkey Industrial Racking System Import & Export List
Table 2020-2025 Global Industrial Racking System Market Size List By Region
Table 2020-2025 Global Industrial Racking System Market Size Share List By Region
Table 2020-2025 Global Industrial Racking System Market Volume List By Region
Table 2020-2025 Global Industrial Racking System Market Volume Share List By Region
Table 2020-2025 Global Industrial Racking System Demand List By Application
Table 2020-2025 Global Industrial Racking System Demand Market Share List By Application
Table 2020-2025 Global Industrial Racking System Capacity List
Table 2020-2025 Global Industrial Racking System Key Vendors Capacity Share List
Table 2020-2025 Global Industrial Racking System Key Vendors Production List
Table 2020-2025 Global Industrial Racking System Key Vendors Production Share List
Table 2020-2025 Global Industrial Racking System Key Vendors Production Value List
Table 2020-2025 Global Industrial Racking System Key Vendors Production Value Share List
Table 2020-2025 Global Industrial Racking System Demand List By Type
Table 2020-2025 Global Industrial Racking System Demand Market Share List By Type
Table 2020-2025 Regional Industrial Racking System Price List
Table 2025-2030 Global Industrial Racking System Market Size List By Region
Table 2025-2030 Global Industrial Racking System Market Size Share List By Region
Table 2025-2030 Global Industrial Racking System Market Volume List By Region
Table 2025-2030 Global Industrial Racking System Market Volume Share List By Region
Table 2025-2030 Global Industrial Racking System Demand List By Application
Table 2025-2030 Global Industrial Racking System Demand Market Share List By Application
Table 2025-2030 Global Industrial Racking System Capacity List
Table 2025-2030 Global Industrial Racking System Key Vendors Capacity Share List
Table 2025-2030 Global Industrial Racking System Key Vendors Production List
Table 2025-2030 Global Industrial Racking System Key Vendors Production Share List
Table 2025-2030 Global Industrial Racking System Key Vendors Production Value List
Table 2025-2030 Global Industrial Racking System Key Vendors Production Value Share List
Table 2025-2030 Global Industrial Racking System Demand List By Type
Table 2025-2030 Global Industrial Racking System Demand Market Share List By Type
Table 2025-2030 Industrial Racking System Regional Price List
Figure Market Size Estimated Method
Figure Major Forecasting Factors
Figure Industrial Racking System Picture
Figure 2020-2030 Regional Trade Balance
Figure 2020-2030 North America Industrial Racking System Market Size And Cagr
Figure 2020-2030 North America Industrial Racking System Market Volume And Cagr
Figure 2020-2030 South America Industrial Racking System Market Size And Cagr
Figure 2020-2030 South America Industrial Racking System Market Volume And Cagr
Figure 2020-2030 Asia & Pacific Industrial Racking System Market Size And Cagr
Figure 2020-2030 Asia & Pacific Industrial Racking System Market Volume And Cagr
Figure 2020-2030 Europe Industrial Racking System Market Size And Cagr
Figure 2020-2030 Europe Industrial Racking System Market Volume And Cagr
Figure 2020-2030 Mea Industrial Racking System Market Size And Cagr
Figure 2020-2030 Mea Industrial Racking System Market Volume And Cagr
Figure 2020-2025 Global Industrial Racking System Capacity Production And Growth Rate
Figure 2020-2025 Global Industrial Racking System Production Value And Growth Rate
Figure 2025-2030 Global Industrial Racking System Capacity Production And Growth Rate
Figure 2025-2030 Global Industrial Racking System Production Value 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 |