Timber Market Insights 2025, Analysis and Forecast to 2030, by Manufacturers, Regions, Technology, Application, Product Type
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Introduction
The timber market encompasses the production, processing, and distribution of wood products derived from forest resources, serving as a fundamental material for construction, furniture manufacturing, packaging, and numerous industrial applications. The industry spans from sustainable forest management through sophisticated wood processing technologies, creating diverse product categories including sawnwood, engineered lumber, wood-based panels, and specialty timber products. Timber products are characterized by renewable resource sustainability, structural strength properties, aesthetic appeal, and versatility across multiple end-use applications.
The market serves construction industries requiring structural lumber, residential and commercial building applications, furniture manufacturing utilizing hardwood and softwood species, packaging industries demanding lightweight and strong materials, and emerging applications in sustainable building technologies. The industry benefits from growing environmental consciousness driving renewable material adoption, expanding construction activities in emerging economies, advancing wood engineering technologies, and increasing demand for sustainable building materials with low carbon footprints.
Market Size and Growth Forecast
The global timber market is projected to reach approximately 7.5-9.5 million USD by 2025, with an estimated compound annual growth rate of 3%-4% through 2030. This steady growth trajectory is supported by expanding construction activities, growing furniture markets, increasing packaging demand, and rising adoption of engineered wood products offering enhanced performance characteristics.
Regional Analysis
North America maintains significant market presence with growth rates of 3.5%-4.5%, driven by robust construction activities, advanced wood processing technologies, and sustainable forest management practices. The United States leads with extensive forest resources, sophisticated manufacturing infrastructure, and strong domestic construction demand. Canada contributes through vast timber resources, advanced forest management practices, and significant export capabilities to global markets.
Europe exhibits growth rates of 3.0%-4.0%, with countries like Sweden, Finland, Germany, and Austria leading in sustainable forestry practices and advanced wood product manufacturing. The region emphasizes environmental certification, engineered wood product development, and innovative construction technologies utilizing timber materials.
Asia Pacific shows growth potential of 3.5%-4.5%, primarily driven by expanding construction activities in China and India, growing furniture manufacturing capabilities, and increasing demand for wood products across diverse applications. The region benefits from both domestic forest resources and significant timber import activities to meet growing demand.
South America demonstrates growth rates of 3.0%-4.0%, led by countries with extensive forest resources including Brazil, Chile, and Argentina. The region contributes through plantation forestry, pulp and paper production, and growing domestic construction activities.
MEA region shows growth rates of 2.5%-3.5%, with development focused on construction applications and emerging wood product manufacturing capabilities in select countries.
Application Analysis
Construction Applications: This dominant segment encompasses structural lumber, engineered wood products, and specialty construction materials. Growth drivers include expanding residential construction, commercial building activities, and increasing adoption of wood-frame construction in multi-story buildings. The segment benefits from advancing building codes supporting wood construction, engineered lumber technologies offering enhanced performance, and growing recognition of wood's environmental benefits.
Furniture Applications: Expected growth of 3.5%-4.5% includes residential and commercial furniture manufacturing utilizing both hardwood and softwood species. The segment benefits from growing furniture markets, increasing consumer preferences for natural materials, and advancing furniture design technologies.
Packaging Applications: Projected growth of 3.0%-4.0% encompasses pallets, crates, and specialty packaging materials. Growth drivers include expanding logistics activities, e-commerce growth requiring packaging solutions, and increasing demand for sustainable packaging alternatives.
Other Applications: This diverse segment includes paper production, biomass energy, and specialty industrial applications, demonstrating steady growth supported by various industrial demands.
Type Analysis
Softwood Timber: This segment demonstrates projected growth of 3.2%-4.2%, driven by construction applications requiring structural lumber, engineered wood products, and building materials. Softwood species offer advantageous strength-to-weight ratios, processing characteristics, and availability from managed forests.
Hardwood Timber: Expected growth of 3.0%-4.0% serves furniture manufacturing, flooring applications, and specialty products requiring hardwood characteristics. The segment benefits from growing furniture markets and increasing demand for premium wood products.
Key Market Players
Weyerhaeuser leads the North American timber market with 10.4 million acres of timberlands in the United States and 14 million acres licensed in Canada, operating integrated forest products manufacturing facilities and maintaining extensive distribution networks.
PotlatchDeltic operates as a real estate investment trust focused on timberlands and wood products manufacturing, following merger with CatchMark Timber Trust in 2022, demonstrating industry consolidation trends.
Rayonier owns approximately 2.5 million acres of timberlands across the U.S. South, Pacific Northwest, and New Zealand, representing geographically diversified forest resources and sustainable management practices.
Stora Enso Oyj represents European leadership in sustainable forestry and advanced wood product manufacturing, emphasizing renewable materials and innovative forest industry solutions.
Canfor operates extensive Canadian forest operations with integrated sawmill and pulp manufacturing capabilities, serving both domestic and international markets.
Industry Value Chain Analysis
The timber industry value chain extends from sustainable forest management through sophisticated wood processing and diverse end-use applications. Upstream activities involve forest planning, silviculture practices, harvesting operations, and transportation logistics from forest to processing facilities.
Primary processing encompasses sawmilling operations, lumber drying and grading, and initial wood product manufacturing. Secondary processing includes engineered lumber production, wood panel manufacturing, and value-added product development requiring specialized equipment and quality control systems.
Distribution channels serve construction supply chains, furniture manufacturers, packaging companies, and various industrial customers through regional distribution networks, specialty suppliers, and direct sales relationships.
End applications span residential and commercial construction, furniture manufacturing, packaging industries, and emerging applications in sustainable building technologies, creating diverse market opportunities and demand drivers.
Market Opportunities and Challenges
Opportunities
●Sustainable Construction Growth: Expanding environmental consciousness drives demand for renewable building materials, creating opportunities for advanced timber products in construction applications. Cross-laminated timber and engineered wood products represent high-growth segments.
●Emerging Market Development: Rapid urbanization and infrastructure development in emerging economies create substantial long-term growth opportunities for timber products across construction and industrial applications.
●Advanced Wood Technologies: Innovations in engineered lumber, wood preservation, and processing technologies create opportunities for enhanced performance products serving demanding applications.
●Carbon Storage Benefits: Growing recognition of wood products' carbon storage capabilities supports market expansion in environmentally conscious building practices and sustainable construction approaches.
Challenges
●Forest Resource Sustainability: Balancing timber harvest with forest conservation requires careful resource management, long-term planning, and sustainable practices to ensure continued raw material availability.
●Environmental Regulations: Evolving environmental standards, certification requirements, and sustainable forestry practices create compliance costs and operational complexity for timber operations.
●Market Price Volatility: Timber prices experience cyclical fluctuations related to construction activity, housing markets, and economic conditions, creating revenue predictability challenges.
●Competition from Alternative Materials: Steel, concrete, and composite materials compete with timber in construction applications, requiring continuous innovation and performance improvement to maintain market position.
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 Timber 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 Timber by Region
8.2 Import of Timber by Region
8.3 Balance of Trade
Chapter 9 Historical and Forecast Timber Market in North America (2020-2030)
9.1 Timber Market Size
9.2 Timber 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 Timber Market in South America (2020-2030)
10.1 Timber Market Size
10.2 Timber 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 Timber Market in Asia & Pacific (2020-2030)
11.1 Timber Market Size
11.2 Timber 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 Timber Market in Europe (2020-2030)
12.1 Timber Market Size
12.2 Timber 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 Timber Market in MEA (2020-2030)
13.1 Timber Market Size
13.2 Timber 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 Timber Market (2020-2025)
14.1 Timber Market Size
14.2 Timber Demand by End Use
14.3 Competition by Players/Suppliers
14.4 Type Segmentation and Price
Chapter 15 Global Timber Market Forecast (2025-2030)
15.1 Timber Market Size Forecast
15.2 Timber Demand Forecast
15.3 Competition by Players/Suppliers
15.4 Type Segmentation and Price Forecast
Chapter 16 Analysis of Global Key Vendors
15.1 Weyerhaeuser
15.1.1 Company Profile
15.1.2 Main Business and Timber Information
15.1.3 SWOT Analysis of Weyerhaeuser
15.1.4 Weyerhaeuser Timber Sales, Revenue, Price and Gross Margin (2020-2025)
15.2 PotlatchDeltic
15.2.1 Company Profile
15.2.2 Main Business and Timber Information
15.2.3 SWOT Analysis of PotlatchDeltic
15.2.4 PotlatchDeltic Timber Sales, Revenue, Price and Gross Margin (2020-2025)
15.3 Rayonier
15.3.1 Company Profile
15.3.2 Main Business and Timber Information
15.3.3 SWOT Analysis of Rayonier
15.3.4 Rayonier Timber Sales, Revenue, Price and Gross Margin (2020-2025)
15.4 Stora Enso Oyj
15.4.1 Company Profile
15.4.2 Main Business and Timber Information
15.4.3 SWOT Analysis of Stora Enso Oyj
15.4.4 Stora Enso Oyj Timber Sales, Revenue, Price and Gross Margin (2020-2025)
15.5 Canfor
15.5.1 Company Profile
15.5.2 Main Business and Timber Information
15.5.3 SWOT Analysis of Canfor
15.5.4 Canfor Timber Sales, Revenue, Price and Gross Margin (2020-2025)
15.6 Interfor
15.6.1 Company Profile
15.6.2 Main Business and Timber Information
15.6.3 SWOT Analysis of Interfor
15.6.4 Interfor Timber Sales, Revenue, Price and Gross Margin (2020-2025)
15.7 Tolko Industries
15.7.1 Company Profile
15.7.2 Main Business and Timber Information
15.7.3 SWOT Analysis of Tolko Industries
15.7.4 Tolko Industries Timber Sales, Revenue, Price and Gross Margin (2020-2025)
15.8 Sierra Pacific Industries
15.8.1 Company Profile
15.8.2 Main Business and Timber Information
15.8.3 SWOT Analysis of Sierra Pacific Industries
15.8.4 Sierra Pacific Industries Timber Sales, Revenue, Price and Gross Margin (2020-2025)
15.9 Idaho Forest Group
15.9.1 Company Profile
15.9.2 Main Business and Timber Information
15.9.3 SWOT Analysis of Idaho Forest Group
15.9.4 Idaho Forest Group Timber Sales, Revenue, Price and Gross Margin (2020-2025)
15.10 Hampton Lumber
15.10.1 Company Profile
15.10.2 Main Business and Timber Information
15.10.3 SWOT Analysis of Hampton Lumber
15.10.4 Hampton Lumber Timber Sales, Revenue, Price and Gross Margin (2020-2025)
15.11 Biewer Lumber
15.11.1 Company Profile
15.11.2 Main Business and Timber Information
15.11.3 SWOT Analysis of Biewer Lumber
15.11.4 Biewer Lumber Timber Sales, Revenue, Price and Gross Margin (2020-2025)
15.12 Georgia-Pacific
15.12.1 Company Profile
15.12.2 Main Business and Timber Information
15.12.3 SWOT Analysis of Georgia-Pacific
15.12.4 Georgia-Pacific Timber Sales, Revenue, Price and Gross Margin (2020-2025)
15.13 ARAUCO
15.13.1 Company Profile
15.13.2 Main Business and Timber Information
15.13.3 SWOT Analysis of ARAUCO
15.13.4 ARAUCO Timber Sales, Revenue, Price and Gross Margin (2020-2025)
15.14 Boise Cascade
15.14.1 Company Profile
15.14.2 Main Business and Timber Information
15.14.3 SWOT Analysis of Boise Cascade
15.14.4 Boise Cascade Timber Sales, Revenue, Price and Gross Margin (2020-2025)
15.15 J.D. Irving
15.15.1 Company Profile
15.15.2 Main Business and Timber Information
15.15.3 SWOT Analysis of J.D. Irving
15.15.4 J.D. Irving Timber Sales, Revenue, Price and Gross Margin (2020-2025)
15.16 West Fraser Timber
15.16.1 Company Profile
15.16.2 Main Business and Timber Information
15.16.3 SWOT Analysis of West Fraser Timber
15.16.4 West Fraser Timber Timber Sales, Revenue, Price and Gross Margin (2020-2025)
15.17 Western Forest Products
15.17.1 Company Profile
15.17.2 Main Business and Timber Information
15.17.3 SWOT Analysis of Western Forest Products
15.17.4 Western Forest Products Timber Sales, Revenue, Price and Gross Margin (2020-2025)
Please ask for sample pages for full companies list
Table Research Scope of Timber Report
Table Data Sources of Timber Report
Table Major Assumptions of Timber Report
Table Timber Classification
Table Timber Applications List
Table Drivers of Timber Market
Table Restraints of Timber Market
Table Opportunities of Timber Market
Table Threats of Timber Market
Table Raw Materials Suppliers List
Table Different Production Methods of Timber
Table Cost Structure Analysis of Timber
Table Key End Users List
Table Latest News of Timber Market
Table Merger and Acquisition List
Table Planned/Future Project of Timber Market
Table Policy of Timber Market
Table 2020-2030 Regional Export of Timber
Table 2020-2030 Regional Import of Timber
Table 2020-2030 Regional Trade Balance
Table 2020-2030 North America Timber Market Size and Market Volume List
Table 2020-2030 North America Timber Demand List by Application
Table 2020-2025 North America Timber Key Players Sales List
Table 2020-2025 North America Timber Key Players Market Share List
Table 2020-2030 North America Timber Demand List by Type
Table 2020-2025 North America Timber Price List by Type
Table 2020-2030 United States Timber Market Size and Market Volume List
Table 2020-2030 United States Timber Import & Export List
Table 2020-2030 Canada Timber Market Size and Market Volume List
Table 2020-2030 Canada Timber Import & Export List
Table 2020-2030 Mexico Timber Market Size and Market Volume List
Table 2020-2030 Mexico Timber Import & Export List
Table 2020-2030 South America Timber Market Size and Market Volume List
Table 2020-2030 South America Timber Demand List by Application
Table 2020-2025 South America Timber Key Players Sales List
Table 2020-2025 South America Timber Key Players Market Share List
Table 2020-2030 South America Timber Demand List by Type
Table 2020-2025 South America Timber Price List by Type
Table 2020-2030 Brazil Timber Market Size and Market Volume List
Table 2020-2030 Brazil Timber Import & Export List
Table 2020-2030 Argentina Timber Market Size and Market Volume List
Table 2020-2030 Argentina Timber Import & Export List
Table 2020-2030 Chile Timber Market Size and Market Volume List
Table 2020-2030 Chile Timber Import & Export List
Table 2020-2030 Peru Timber Market Size and Market Volume List
Table 2020-2030 Peru Timber Import & Export List
Table 2020-2030 Asia & Pacific Timber Market Size and Market Volume List
Table 2020-2030 Asia & Pacific Timber Demand List by Application
Table 2020-2025 Asia & Pacific Timber Key Players Sales List
Table 2020-2025 Asia & Pacific Timber Key Players Market Share List
Table 2020-2030 Asia & Pacific Timber Demand List by Type
Table 2020-2025 Asia & Pacific Timber Price List by Type
Table 2020-2030 China Timber Market Size and Market Volume List
Table 2020-2030 China Timber Import & Export List
Table 2020-2030 India Timber Market Size and Market Volume List
Table 2020-2030 India Timber Import & Export List
Table 2020-2030 Japan Timber Market Size and Market Volume List
Table 2020-2030 Japan Timber Import & Export List
Table 2020-2030 South Korea Timber Market Size and Market Volume List
Table 2020-2030 South Korea Timber Import & Export List
Table 2020-2030 Southeast Asia Timber Market Size List
Table 2020-2030 Southeast Asia Timber Market Volume List
Table 2020-2030 Southeast Asia Timber Import List
Table 2020-2030 Southeast Asia Timber Export List
Table 2020-2030 Australia Timber Market Size and Market Volume List
Table 2020-2030 Australia Timber Import & Export List
Table 2020-2030 Europe Timber Market Size and Market Volume List
Table 2020-2030 Europe Timber Demand List by Application
Table 2020-2025 Europe Timber Key Players Sales List
Table 2020-2025 Europe Timber Key Players Market Share List
Table 2020-2030 Europe Timber Demand List by Type
Table 2020-2025 Europe Timber Price List by Type
Table 2020-2030 Germany Timber Market Size and Market Volume List
Table 2020-2030 Germany Timber Import & Export List
Table 2020-2030 France Timber Market Size and Market Volume List
Table 2020-2030 France Timber Import & Export List
Table 2020-2030 United Kingdom Timber Market Size and Market Volume List
Table 2020-2030 United Kingdom Timber Import & Export List
Table 2020-2030 Italy Timber Market Size and Market Volume List
Table 2020-2030 Italy Timber Import & Export List
Table 2020-2030 Spain Timber Market Size and Market Volume List
Table 2020-2030 Spain Timber Import & Export List
Table 2020-2030 Belgium Timber Market Size and Market Volume List
Table 2020-2030 Belgium Timber Import & Export List
Table 2020-2030 Netherlands Timber Market Size and Market Volume List
Table 2020-2030 Netherlands Timber Import & Export List
Table 2020-2030 Austria Timber Market Size and Market Volume List
Table 2020-2030 Austria Timber Import & Export List
Table 2020-2030 Poland Timber Market Size and Market Volume List
Table 2020-2030 Poland Timber Import & Export List
Table 2020-2030 Russia Timber Market Size and Market Volume List
Table 2020-2030 Russia Timber Import & Export List
Table 2020-2030 MEA Timber Market Size and Market Volume List
Table 2020-2030 MEA Timber Demand List by Application
Table 2020-2025 MEA Timber Key Players Sales List
Table 2020-2025 MEA Timber Key Players Market Share List
Table 2020-2030 MEA Timber Demand List by Type
Table 2020-2025 MEA Timber Price List by Type
Table 2020-2030 Egypt Timber Market Size and Market Volume List
Table 2020-2030 Egypt Timber Import & Export List
Table 2020-2030 Israel Timber Market Size and Market Volume List
Table 2020-2030 Israel Timber Import & Export List
Table 2020-2030 South Africa Timber Market Size and Market Volume List
Table 2020-2030 South Africa Timber Import & Export List
Table 2020-2030 Gulf Cooperation Council Countries Timber Market Size and Market Volume List
Table 2020-2030 Gulf Cooperation Council Countries Timber Import & Export List
Table 2020-2030 Turkey Timber Market Size and Market Volume List
Table 2020-2030 Turkey Timber Import & Export List
Table 2020-2025 Global Timber Market Size List by Region
Table 2020-2025 Global Timber Market Size Share List by Region
Table 2020-2025 Global Timber Market Volume List by Region
Table 2020-2025 Global Timber Market Volume Share List by Region
Table 2020-2025 Global Timber Demand List by Application
Table 2020-2025 Global Timber Demand Market Share List by Application
Table 2020-2025 Global Timber Key Vendors Sales List
Table 2020-2025 Global Timber Key Vendors Sales Share List
Table 2020-2025 Global Timber Key Vendors Revenue List
Table 2020-2025 Global Timber Key Vendors Revenue Share List
Table 2020-2025 Global Timber Demand List by Type
Table 2020-2025 Global Timber Demand Market Share List by Type
Table 2020-2025 Regional Timber Price List
Table 2025-2030 Global Timber Market Size List by Region
Table 2025-2030 Global Timber Market Size Share List by Region
Table 2025-2030 Global Timber Market Volume List by Region
Table 2025-2030 Global Timber Market Volume Share List by Region
Table 2025-2030 Global Timber Demand List by Application
Table 2025-2030 Global Timber Demand Market Share List by Application
Table 2025-2030 Global Timber Key Vendors Sales List
Table 2025-2030 Global Timber Key Vendors Sales Share List
Table 2025-2030 Global Timber Key Vendors Revenue List
Table 2025-2030 Global Timber Key Vendors Revenue Share List
Table 2025-2030 Global Timber Demand List by Type
Table 2025-2030 Global Timber Demand Market Share List by Type
Table 2025-2030 Timber Regional Price List
Figure Market Size Estimated Method
Figure Major Forecasting Factors
Figure Timber Picture
Figure 2020-2030 Regional Trade Balance
Figure 2020-2030 North America Timber Market Size and CAGR
Figure 2020-2030 North America Timber Market Volume and CAGR
Figure 2020-2030 South America Timber Market Size and CAGR
Figure 2020-2030 South America Timber Market Volume and CAGR
Figure 2020-2030 Asia & Pacific Timber Market Size and CAGR
Figure 2020-2030 Asia & Pacific Timber Market Volume and CAGR
Figure 2020-2030 Europe Timber Market Size and CAGR
Figure 2020-2030 Europe Timber Market Volume and CAGR
Figure 2020-2030 MEA Timber Market Size and CAGR
Figure 2020-2030 MEA Timber Market Volume and CAGR
Figure 2020-2025 Global Timber Market Volume and Growth Rate
Figure 2020-2025 Global Timber Market Size and Growth Rate
Figure 2025-2030 Global Timber Market Volume and Growth Rate
Figure 2025-2030 Global Timber 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 |