porters five forces

Essay by andrewyeo November 2014

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Industry Analysis

This case provides an opportunity to practice analyzing the industry environment and how it might influence the strategic issues facing a firm. In essence, any industry analysis requires us to think about how broadly we should define the scope of the industry. Please be sure to identify the boundary of the industry.

In preparing your case for class discussion, you will draw on the section from Grant & Jordan on Blackboard or Porter, M.E. (2008). The five competitive forces that shape strategy. Harvard Business Review, 86 (1), 78-93. Please focus your discussion on trying to apply each of the five forces mentioned in this article to the case study. Look at what contributes to each of the five forces and try to identify or interpret data and evidence from the case to make a judgment about each of these. You may use the worksheet below to help you structure your notes if you wish.

Please note: in real life, as in the case, we often don't have full information so have to make 'best assessments' based on the data we have. If you find there are no data to address a factor, leave it blank.

Bargaining Power of Suppliers (if this is different for different supplier groups, note the difference)

Evidence from the case.

Implications for the 'power' of suppliers … does this lead to stronger or weaker power of the suppliers?

Concentration of suppliers relative to firms (rivals) (many/few)

Importance of the firms (rivals) to the suppliers' profits

Switching costs of firms (rivals)

Differentiation of the suppliers'


Availability of substitute products

Threat of forward integration by suppliers

Bargaining Power of Buyers (if this is different for different buyer groups, note the difference)

Evidence from the case.

Implications for the 'power' of buyers … does this lead...