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Home » Business Strategy » Five Forces Analysis

Industry Analysis: The Five Forces

Source: www.ces.purdue.edu
Topic: Five Forces Analysis

Sort Desciption: To identify the important. structural features of your industry via the five forces you. conduct an industry analysis that answers the question ...

Content Inside: PURDUE EXTENSION EC-722 Industry Analysis: The Five Forces Cole Ehmke Joan Fulton and Jay Akridge Department of Agricultural Economics Kathleen Erickson Erickson Communications Sally Linton Department of Food Science Overview Assessing Your Marketplace The economic structure of an industry is not an accident. Its complexities are the result of long-term social trends and economic forces. But its effects on you as a business manager are immediate because it determines the competitive rules and strategies you are likely to use. Learning about that structure will provide essential insight for your business strategy. MichaelPorterhasidentifiedfiveforcesthatar ewidelyusedto assess the structure of any industry. Porters five forces are the: Bargaining power of suppliers Bargaining power of buyers Threat of new entrants Threat of substitutes and Rivalry among competitors. Together the strength of the five forces determines the profit potential in an industry by influencing the prices costs and required investments of businessesthe elements of return on investment. Stronger forces are associated with a more challenging business environment. To identify the important structural features of your industry via the five forces yo ...







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