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Question $15$

Using the five$-$forces model of competition to determine what competition is like in a given industry involves

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determining how many industry rivals are operating with a competitive advantage and how many are operating at a competitive disadvantage.

determining which rival has the biggest competitive advantage and whether its advantage is likely to be durable or shortlived, assessing whether the industry outlook is conducive to good profitability, and trying to anticipate what moves rivals are likely to undertake next.

building the picture of competition in three steps: $(1)$ identifying the specific competitive pressures associated with each of the five competitive forces; $(2)$ evaluating how strong the pressures comprising each competitive force are; and $(3)$ determining whether the collective strength of all five competitive forces is conducive to high$/$good industry profitability. identifying which of the five competitive forces constitutes the strongest industry driving force, trying to anticipate what moves rivals are likely to undertake next, determining what impact the industry's driving forces will have on future competitiv intensity.

assessing the key factors for future competitive success, deciding which rivals are in the strongest$/$weakest market positions and trying to anticipate what moves rivals are likely to undertake next.