June 2008
Beginner to intermediate
240 pages
4h 26m
English
book
Analysis Without Paralysis: 10 Tools to Make Better Strategic Decisions
by Babette E. Bensoussan, Craig S. Fleisher
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Chapter 6. Five Forces Industry Analysis
Description and Purpose
The Five Forces Industry Analysis, developed by Michael Porter,[1] is designed to give you an understanding of an industry and its participants. The purpose of industry analysis is to analyze the economic and market forces that will ultimately influence an industry’s profit potential. Identifying the profit potential or “attractiveness” of an industry provides the foundation for bridging the gap between your firm’s external environment and its internal resources.
Porter classifies the five forces or “rules of industry competition” as follows:
Threat of new entrants
Bargaining power of suppliers
Bargaining power of buyers
Threat of substitute products or services
Degree of rivalry among ...
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