Your assignment is to make Porter’s five forces analysis of the industry you choose. ‒It is important to note that you are practicing this from the perspective of creating a new business. The analysis does not have to be complete. More relevant is that you demonstrate that you understand how the analysis works especially from the point of view of a new business.‒Step 1: Select an industry make the five forces analysis
‒Step 2: Determine the level of threat to industry profitability for each of the forces (low, medium, or high). Use the table on the next slide
‒Step 3: Use the table (on the next slide) to get an overall feel for the attractiveness of the industry
‒Step 4: Use the table to identify the threats that are most often relevant to industry profitability
‒Step 5: Answer the following questions-Is the industry a realistic place for a new venture? How and why?-If we do enter the industry, can our firm do a better job than the industry as a whole in avoiding or diminishing the threats that suppress industry profitability? How and why?-Is there a unique position in the industry that avoids or diminishes the forces that suppress industry profitability? How and why?-Is there a superior business model that can be put in place that would be hard for industry incumbents to duplicate? How and why?
