This assignment requires each group to pick a preferred industry and conducting: A) a Porter’ five force analysis of the industry; and B) the key driving forces of the industry next year, and five years from now.

As a reminder, below are the steps in conducting Porters’ five force analyses:
1.Identify clearly the product/service or industry (industry-boundary) and market (local, domestic, or global).

2.The analysis must be done at industry-level (comparing across industries), not firm-level (comparing across firms).

3.Identify competitors. It may be better to focus on a specific strategic group.

4.Identify supplying industry and customers’ industry. Draw the industry-level value chain if necessary.

5.Evaluate each of the five force (low-, medium-, or high-threat). Provide justifications for your evaluations.

►Competitive rivalry: numbers of competitors? Similar products? Market growth?

►Potential entry: Any barriers to entry (economy of scales? Legal? Etc.)

►Power of suppliers/customers (comparing numbers of suppliers/customers à balance of power).

►Substitute products: growth rate? Would it take over anytime soon?)

6.Evaluate whether the overall industry conditions are favorable! (whether we should continue doing business or exit?)

Porter’ five force analysis of the industry