Industry Structure - Porter's Five Forces

STUDENT HAND-OUT

WORKSHEET ON INDUSTRY STRUCTURE

This worksheet was developed to apply Porter’s Five Forces analysis to an industry. For each of the factors listed below, place an “X” in the appropriate column (Yes, No or Moderate). Once you have completed the analysis of the five forces, compute the number of factors for each category, and write down the number for the overall analysis.

1. Threat of entrants:

|+ factors (favorable to industry) |Yes |Mod |No |
|- factors (unfavorable to industry) |(+) | |(-) |
|Do large firms have a cost or performance advantage in your segment of the industry? |+ | | |
|Are there any proprietary product differences in your industry? | |x | |
|Are there any established brand identities in your industry? |+ | | |
|Do your customers incur any significant costs in switching suppliers? | | |- |
|Is a lot of capital needed to enter your industry? |+ | | |
|Is serviceable used equipment expensive? |+ | | |
|Does the newcomer to your industry face difficulty in accessing distribution channels? | | |- |
|Does experience help you to continuously lower costs? | |x |