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Intensity of rivalry in Czech furniture production industry

Author

Listed:
  • Lucie Špačková

    (Ústav managementu, Mendelova univerzita v Brně, Zemědělská 1, 613 00 Brno, Česká republika)

  • Pavel Žufan

    (Ústav managementu, Mendelova univerzita v Brně, Zemědělská 1, 613 00 Brno, Česká republika)

Abstract

The paper focuses on furniture production industry in the Czech Republic and evaluates the influence of competition forces within this industry. These forces have a direct impact on success of competitive strategies of the firms. Furniture production industry is a typical branch occupied by numerous small and medium-sized firms. Small firms aim on satisfying domestic (or rather local) demand, medium-sized and big firms are much more aiming on exports. The methodical sources for evaluation of rivalry represent particular influences defined by Porter in his model of five competitive forces. Main influences identified by Porter, which are increasing the intensity of competition in the furniture production industry in the Czech Republic include low industry concentration, relatively low diversity of competitors, decline in sales, low (or none) switching costs, and existing excessive capacity within the industry. Further development will be most significantly influenced by a growing concentration of the bigger Czech producers on domestic market and overall economic development.

Suggested Citation

  • Lucie Špačková & Pavel Žufan, 2012. "Intensity of rivalry in Czech furniture production industry," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 60(2), pages 421-428.
    • Handle: RePEc:mup:actaun:actaun_2012060020421
    DOI: 10.11118/actaun201260020421
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    Cited by:

    1. Tomáš Najbrt & Kamila Hasilová, 2016. "Impact of the Financial Crisis of 2008 on Furniture Industry in the Czech Republic and Development of Tangible Fixed Assets in 2005-2012 and its Possible Renewal," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 64(3), pages 1045-1052.

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