List of All Symptoms

The market “symptoms” have been divided into categories. You may select a specific symptom below or view them by category.


Customer Segment Symptoms

 The market structure is changing as shares shift in the channels of distribution
 Some companies in the industry have begun to replace their direct sales forces with independent distributors (or vice versa)
 Fast growing competitors focus on the industry’s large customers
 Large customers are getting higher discounts
 Medium sized customers are under pressure from both their larger and smaller peers
 Distribution channels are undergoing a shakeout
 Competitors are upgrading their channels of distribution
 Industry customers are forming buying groups
 Customers are consolidating their purchases
 Customers are adding suppliers because incumbent suppliers failed them
 Customers are taking on more suppliers because shortages have appeared
 Customers are making significant changes in their supplier arrangements

Competition Symptoms

 Share is tougher to shift
 New entrants are penetrating the distribution channels of the industry’s leading competitors
 Most share shifting in the industry seems to be coming from volume gained within existing customer relationships rather than from new customers
 The industry leaders are losing share
 Competition is beginning to focus resources on market segments as market growth slows
 Competitors in Formerly Underdeveloped Markets Have Begun Meeting One Another
 While still growing some competitors are losing share


Price Point Coverage Symptoms

 New entrants are growing much faster than the market
 Low end products are gaining share of the market
 Price points are growing at differential rates as companies enter higher end niches to improve profits
 Companies are trying to create upscale niches
 Some competitors proliferate products around the heart of the market
 One or more companies have introduced a better product at a lower price
 The larger companies are squeezing out the smaller

Performance Innovation Symptoms

 Leaders Stress Quality to Offset Competitors’ Lower Prices
 Competitors are changing features of the product
 Product innovation has accelerated
 Competitors are emphasizing reliability in product quality
 Some competitors have formed partnership services with their channels of distribution
 Competitors are improving the product by emphasizing the customer’s purchase process
 The level of convenience offered to customers has increased
 Competitors are aiming their marketing at narrower segments


Pricing Policy Symptoms

 The industry is seeing its first price wars
 Foreign competitors are expanding with low prices
 Customers are more price sensitive
 Most competitors are offering low prices after a period where leaders held prices high
 As large competitors match low prices, other competitors face difficulties
 Large competitors are maintaining price levels as smaller competitors discount
 Some competitors seek price increases more aggressively than others

Price and Margin Levels Symptoms

 Demand in the industry is falling
 Revenue growth has been high, but has slowed
 Competition is expanding with the appearance of discounters
 Small discounting competitors have gained a market toehold
 Demand continues to grow but margins are low and new entrants are taking share
 New competition is entering a settled market
 Margins are falling but competition continues to expand aggressively
 Both new entrants as well as existing competitors have added capacity
 Industry profits are low but downsized capacity remains
 Demand has turned up bringing a tight market and more capacity
 After high growth, demand has leveled and capacity has increased
 Substitute products have grown in importance
 Profits are under pressure despite demand growth
 Technology improvements bring falling prices
 The industry cannot pass on cost increases
 Price wars are spreading in the industry
 Demand rose quickly for some time in the past
 Observers expect industry capacity reduction
 The company believes the industry will be more diplomatic about adding capacity
 Profits are high because the company is in a niche segment
 Prices on niche products continue to rise while other prices fall
 Prices are rising as the industry runs out of capacity
 The industry has been able to preserve margins by increasing prices


 The industry is adding new, more efficient capacity in the effort to reduce costs
 The industry is reducing costs aggressively
 The industry is consolidating through mergers and acquisitions
 The number of industry competitors is on the decline
 Part of the industry is automating to offset wage advantages of some competitors
 Some competitors automate to become the lowest cost players
 Outsourcing is a growing phenomenon in the industry
 Some competitors are using growth to reduce their costs
 Some industry leaders have lower returns than the smaller competitors

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