ABSTRACT
This chapter discusses the competition for market share that takes place between businesses in the same industry. They not only have to compete with suppliers and customers for the added value in the production chain but they also have to compete with businesses wanting to enter the industry. The intensity of competition, the battle for the favour of consumers and the added value in the production chain are a source of ongoing concern among businesses. The chapter deals with industry aspects that determine the intensity of competition and the structure of the market. The number of companies within an industry and the degree of product differentiation determine the market structure. The chapter also deals with changes in the structure of an industry that is caused by products and industries having their own product life cycle, and describes method of analysing industries that mainly looks at the environmental factors that affect industries.
