What does 5C mean?

5C Analysis is a marketing framework to analyze the environment in which a company operates. It can provide insight into the key drivers of success, as well as the risk exposure to various environmental factors. The 5Cs are Company, Collaborators, Customers, Competitors, and Context.

corporatefinanceinstitute.com - Learn How to Perform a 5C Marketing Analysis - Corporate Finance Institute

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5C Analysis A marketing framework for analyzing a company's operating environment Written by CFI Team Updated December 1, 2022

What is the 5C Analysis?

Company

When analyzing a company using the 5C marketing framework, the key issue is to identify the Sustainable Competitive Advantage that belongs to the focal company. It can be in the form of brand equity, economies of scale, technological development, etc. To identify if the focal company has a sustainable competitive advantage, the VRIO (Variable Rare Imitable Organized) model can be utilized to distinguish if a company’s assets offer a temporary or sustainable advantage.

Collaborators

Collaborators are entities that allow or enhance a company’s ability to provide its particular good or service in the way that it does. This factor primarily revolves around a company’s supply chain, that ranges from spot contracts up to quasi-vertical integration. The direction of integration can only be upstream, as downstream collaborators are more specifically defined as customers in the 5C Analysis framework.

Customers

The group of potential customers a company can reach with its products or services can be broken down into three main sizes: Total Available Market, Serviceable Available Market, and the Serviceable Obtainable Market. The market segments may be further segmented through demographics, psychographics, geography, and other distinguishing factors. The Total Available Market (TAM) is the most generalized customer segment that includes every possible customer that demands a particular product or service. The Serviceable Available Market (SAM) would be a subset of the TAM that is categorized by the potential use of a company’s product or service. The Serviceable Obtainable Market (SOM) sub-segment of the market is the narrowest definition that specifies the segment of a market that a company could realistically aim to capture.

Competitors

Competition can be found in the form of other companies operating in the same industry as the focal company. To determine the industry, industry classification systems such as the North American Industry Classification System exist to provide a standardized method of defining an industry. One common metric to identify players of interest is to examine their market share within the industry. It is typically stated through the concentration ratio CR 4 , which shows the percentage of the market share held by the four largest firms in the industry. Note, however, that industry classification systems may not provide a sufficiently thorough industry definition for certain companies. This can occur because a firm may operate across multiple industries or it may serve a niche market that differs from the traditional industry definition.

Context

The context in which a business operates is most often analyzed with the use of PESTEL analysis. It provides coverage into the areas that may affect a business, but where the business exercises either no or limited control. Changes to contextual factors may impact the industry as a whole rather than a particular company. As such, an advantage experienced by such changes may not translate into a competitive advantage for the focal company or vice versa. Thank you for reading this guide to performing 5C Analysis. To help you keep learning and advancing your career, check out the additional CFI resources below:

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A lower blood volume also reduces flow to the extremities of the body, leading to numbness in the fingers and toes. At this point, the blood is too thick to make its way through the small capillaries in the brain: this makes it impossible to concentrate or focus for any period of time. Of course, this scenario may only occur in extreme circumstances. At this level of dehydration, one would need to seek medical treatment immediately. The repercussions of even mild dehydration, however, can be serious nonetheless. The tell-tale signs of mild dehydration include dry mouth, thirst, dark urine and headaches. This level of dehydration can hinder your brain’s ability to function at full speed, and result in what some might call “brain fog”. Brain fog can manifest itself in different ways, like afternoon fatigue, headaches, issues focusing, and even depression and anger. People forget to drink water throughout the day for many reasons, however, it is important to pinpoint these reasons and reflect on how you can make appropriate changes. If you’re too busy, setting reminders on your phone can simplify the process. If you are constantly working on the go, you could carry a water bottle with you throughout the day to ensure you have access to water. If you don’t like the taste of your water, try a Santevia alkaline water filter for great, fresh-tasting water.

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