Identify key structural features of the industry that determine the forces governing competition.

The key structural features of an industry that determines the forces governing competition are the number and size of competitors, the availability of resource inputs, the nature and degree of product differentiation, barriers to entry and exit, buyers’ power in terms of pricing and bargaining, suppliers’ power in terms of pricing or quality control, and government involvement. The number and size of competitors shape how much competition exists within a market; if there is only one or two large players then it can be difficult for smaller firms to gain traction. The availability of resource inputs affects how easy it is for firms to create products or services; if resources are limited then firms may have a hard time expanding production or innovating new solutions.

Product differentiation deals with how distinct goods or services differ from others in their field which can be used to attract customers as well as secure higher prices. Barriers to entry refer to any challenges that might exist when attempting to enter an already existing marketplace while exit barriers deal with any issues preventing businesses from exiting the market easily. Buyers’ power ties into their ability to negotiate lower prices while suppliers’ power pertains more towards their ability control what goods/services they provide at certain costs.

Lastly, government involvement can heavily influence competition through laws such as antitrust regulations which seek ensure fair play amongst companies operating in a particular sector. By understanding these key structural features one can better comprehend the forces governing competition within an industry which will help them make informed decisions when entering new markets or developing strategies for staying ahead against rival firms.