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    Impact of Five Forces Analysis

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    The Five Forces model is a critical component of the analysis. Please:
    o Identify how each force impacts the trucking industry and Werner (www.werner.com) in particular.
    o Is this an attractive industry to invest in?
    o What generic strategy is Werner (and top competitors) pursuing?
    o How will the competitive environment change in the next year and 5 year period?

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    Impact of Five Forces Analysis
    Following is the application of porters five forces model impact on trucking industry:
    Rivalry among existing firms: According to industry analysis, competition in the trucking industry is intense. It can influence the market capitalization and share of Werner negatively due to increased competition (Trucking Industry Overview Complete Version, 13 February 2014). So, to address the rivalry, Werner can offer valuable and unique services.

    Threat of substitute products: In the trucking industry, retreads are low in cost, so threat of these substitute pre-cuts is higher in this industry that can be used in place of new tires. It can also impact Werner negatively (Porter's Five Forces, 2010). So, Werner should make use of tires wisely.

    Bargaining power of buyers: Bargaining power of buyers is high due to credible backward integration in case of purchase of tires by large auto manufactures. This factor can also influence the business operations of Werner negatively.

    Bargaining power of Suppliers: Bargaining power of supplier is weak due to standardization of products and relationship of tire industry with the automakers. Hence, it can be stated that ...

    Solution Summary

    This response analyzes the trucking industry, Werner's generic strategy in particular, using Porter's five forces model. It also looks at how the competitive environment will change in the next year and 5 year period. Attached in Word.