Top 3 Most Competitive Industries
There are many ways to measure success and competition in the business world. Rivalry, bargaining power, threats, and job availability can tip the scales in different directions. Michael Porter's Five Forces Model explains elements you can use to analyze a business's level of competition.
Individual companies will score vastly differently, but we can rank the top industries according to Porter's Five Forces Model's principles.
Thanks to the development of technology, better internet coverage, and a global pandemic, software companies rank higher than ever. Many people have discovered that their jobs can be done well on an online platform.
Our need for virtual entertainment has grown too. Streaming services, sportsbook platforms, and online casinos have all jumped to the front of the queue and need more software developers. This has increased the competition in this industry as established developers compete against smaller studios.
Hospitality and Travel
Despite travel bans and hostels used quarantine spots in 2020, the hospitality industry is always at the top of the list of competitive industries. This is because of the sheer amount of rivalries and threats.
You're spoilt for choice when it comes to travel options and places to stay. Different airlines offer a host of specials, and hotel lists are endless on thousands of websites. And that is not even considering other options like Uber and Airbnb.
Most people have a shopping preference, whether it is online, on apps, or in person. There are hordes of shops that sell groceries, clothes, appliances, toys, gifts, and everything else. And it doesn't matter what you are looking for. You can find it online too.
Don't want to leave your couch? Have it delivered. Not always home? Choose a pickup point. Are you looking for a reason to leave the house? Make your way to the mall that is conveniently close to your house to browse through everything.
The range and accessibility open the doors for solid competition. Shopping apps, food delivery apps, store websites, and mobile-friendly payment methods mean you can shop wherever and whenever. It also means that people have a range of options. Companies have to be on point with specials and promotions. They have to be cheaper, offer more range, or become super-specialized. There is no doubt that competition is tough in this industry.