Market strength and competitive standing of business unit
Explain about the market strength and competitive standing of business unit.
Expert
After settling on a group of competitive strength measures that are healthy matched to conditions of the different business units, weights indicating each measure’s importance require to be assigned. As before, the significant weights must add up to 1. Each business unit is then rated on each of the selected strength measures, using a rating scale of 1 to 10. Weighted strength ratings are considered by multiplying the business unit’s ranking on strength by the assigned weights. The total of weighted ratings across all the strength measures gives a quantitative gauge of a business unit’s whole market strength and competitive standing.
Interpreting the Competitive Strength Scores:
Business units with the competitive strength ratings above 6.7 on a rating scale of 1 to 10 are powerful market candidates in their industries.
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