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?

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Determining the attractiveness of an industry using the five forces model Threat to industry Threat to industry profitability Threat to industry profitability Competitive force profitability Low Medium High Threat of substitutes Threat of new entrants Rivalry among existing firms Bargaining power of suppliers Bargaining power of buyers 22 University of Oulu Determining the attractiveness of an industry using the five forces model Threat to industry Threat to industry profitability Threat to industry profitability Competitive force profitability Low Medium High Threat of substitutes Threat of new entrants Rivalry among existing firms Bargaining power of suppliers Bargaining power of buyers 22 University of Oulu

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Evaluating the profit potential of a business requires you to research a range of things including your supply chain buyer power and therefore the relative competitiveness of your industry Without a c... View the full answer