Industry Analysis Using Porter's Five Forces
Not what you're looking for?
Strategic Leadership
There is a model that was developed by Michael Porter, a Harvard professor, called Porter's Five Forces for Sustained Competitive Advantage. This model states that in order to determine the vulnerability of an industry or the strength of an industry in the market, one could apply Porter's Five Forces to the industry to determine the likelihood of success in the industry.
Porter's Five Forces are:
Rivalry of competition
Threat of substitutes
Buyer power
Supplier power
Barriers to entry
Assignment is as follows:
You are a wealthy captain of industry. Because of your good leadership and research skills, you continually seek new industries to enter, and you are quite adept at determining with great reliability whether or not you should enter an industry because you utilize Porter's Five Forces so extensively.
Find an industry other than the ones discussed in class, and research that industry to determine, based upon Porter's Five Forces, whether or not it would be viable to enter that industry. Explain each of the five forces as they apply to the industry in question, and explain your findings. Please do not select an industry that is the same as your classmates. Remember that you are not comparing an organization to the forces, but an industry.
Purchase this Solution
Solution Summary
An industry analysis using Porter's five forces are examined.
Solution Preview
Porter's five forces model can be seen as static, but yet competition is dynamic and therefore industry structure changes. However, using Porter's 5 Forces Analysis is still helpful, and includes the following:
? Rivalry of competition
? Threat of substitutes
? Buyer power
? Supplier power
? Barriers to entry
Let's apply this to the airline industry.
Airline Industry: Porter's 5 Forces Analysis
1. Barriers to entry. Initially, one could think that the airline industry is fairly difficult to break into, but that is not necessarily so. For example, the new entrant would need to look at whether there are substantial costs to access bank loans and credit. For example, if borrowing money is cheap, then the likelihood of more airliners entering the industry is higher. The more new airlines that enter the market, the more saturated it ...
Purchase this Solution
Free BrainMass Quizzes
Social Media: Pinterest
This quiz introduces basic concepts of Pinterest social media
Marketing Research and Forecasting
The following quiz will assess your ability to identify steps in the marketing research process. Understanding this information will provide fundamental knowledge related to marketing research.
Academic Reading and Writing: Critical Thinking
Importance of Critical Thinking
Business Processes
This quiz is intended to help business students better understand business processes, including those related to manufacturing and marketing. The questions focus on terms used to describe business processes and marketing activities.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.