Acta Univ. Agric. Silvic. Mendelianae Brun. 2012, 60(2), 421-428 | DOI: 10.11118/actaun201260020421

Intensity of rivalry in Czech furniture production industry

Lucie Špačková, Pavel Žufan

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

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.

Keywords: Porter's model, furniture production industry, industry concentration, intensity of rivalry, diversity of competitors

Received: November 30, 2011; Published: October 3, 2013  Show citation