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Estimating Competition Intensity: Tools & Methods
Before crafting a GTM strategy, you need to understand how intense the competition is — and what it means for profitability.
One popular tool is Porter’s Five Forces, analyzing industry rivalry, the threat of new entrants, substitutes, supplier power, and customer power. The goal is to see whether profits stay with you or get eroded by powerful buyers, suppliers, or aggressive competitors — and whether you can protect margins from new entrants or substitutes.
For a more quantitative view, many use the Herfindahl-Hirschman Index (HHI), which measures market concentration based on competitors’ market shares. A high HHI signals dominance by a few big players; a low one suggests fragmentation and opportunity.
Finally, competitor benchmarking and customer surveys validate the data. Together, these tools ensure you measure competition intensity before shaping your market entry or GTM strategy.

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