The competitive landscape of the third industry
3、Competitive pattern of the industry
In addition to the vertical pattern, there is also a horizontal pattern.
The horizontal pattern is the competition between companies.
The best indicator to measure the competitive pattern is the concentration, that is, the market share jointly occupied by the head players.
The sum of the market shares of the top five players is called CR5, and the sum of the shares of the top ten players is called CR10.
Industries with high threshold, standardized products and strong network effects tend to have higher concentration, such as heavy industry and the Internet.
The concentration is much lower in industries with low threshold and personalized products, such as restaurants, tutors and hairdressers.
In industries with high concentration, the head player will be very comfortable, first-mover advantage, the strongest is always strong, and subsequent players are difficult to subvert.
In industries with low concentration, the pressure to survive is great, and product quality and personalized services become the basis for survival, and investors need to be carefully selected at this time.
$苹果(AAPL)$ $标普500ETF(SPY)$ $标普500(.SPX)$ $特斯拉(TSLA)$ $纳指三倍做空ETF(SQQQ)$ $阿里巴巴(BABA)$ $沃尔玛(WMT)$ $微软(MSFT)$ $新思科技(SNPS)$ $奈飞(NFLX)$ $英伟达(NVDA)$ $亚马逊(AMZN)$ $谷歌(GOOG)$
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
