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?)