Corporate Strategy and Policy A Template for Structural Analysis of an Industry You can use the following template for analyzing the structure of an industry. It requires you to rate the attractiveness of an industry on a 5-point scale for several factors relating to each of the five forces in Porter’s (1980) model. (A 7-point or a 10-point scale would perhaps be even better in that it would allow finer discrimination between two businesses with different levels of attractiveness
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In Michael Porter’s article about The Five Competitive Forces that Shape Strategy‚ he identifies the five forces that shape industry competition as: threat of new entrants‚ bargaining power of buyers‚ threat of substitute products or services‚ bargaining power of suppliers‚ and rivalry among existing competitors. Then he breaks each of these down even further‚ giving information about the factors that should be considered when making assessments in each of these areas. The main underlying purpose
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INTRODUCTION An industry is a group of firms whose products are close substitutes for each other (e.g. the car industry‚ the travel industry). Some industries are more profitable than others. Why? The answer lies in understanding the dynamics of competitive structure in an industry. The external environment of an organization is marked by intense competition between rival firms. The components of external environment include economic‚ socio-cultural‚ and global issues. In order to gain sustainable
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Porter’s Five Forces Analysis of the Automobile Industry Porter’s Five Forces‚ also known as P5F‚ is a way of examining the attractiveness of an industry. It does so by looking at five forces which act on that industry. These forces are determinants of that industry’s profitability. The 5 forces are: 1. The threat of new entrants In the auto manufacturing industry‚ this is generally a very low threat. Factors to examine for this threat include all barriers to entry such as upfront capital requirements
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perform quite so well. Few markets have changed in recent years as much as civil aerospace. Ten years ago 950 million people travelled by air; five years ago they numbered 1.1 billion and the total is set to climb to 2.5 billion by 2009. The aviation industry provides more than 24 million jobs worldwide‚ while its contribution to the world economy is estimated to rise to $1‚800 billion by 2009. Today‚ one-third of the world’s manufactured exports are transported by air. Twenty years ago the proportion
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competitive environment of easyJet. Below‚ you will find some guidance to assist your analysis. It can be challenging to find sufficient breadth of information about environment in which the organisation operates simply by looking at its website - you may also find it useful to consider other sources of background information such as undertaking a “Google search” of the low cost airline sector or using for example Mintel industry reports. When examining corporate websites‚ searching under headings such
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Industry Analysis: Pharmaceutical Preparations Macro and Micro Analysis Macro & Micro Industry Analysis: Pharmaceuticals subgroup: Pharmaceutical preparations The report analyses the macro and micro-environmental factors of the industrial group called “Manufacture of pharmaceutical preparations” with the standard industrial code of 21200‚ according to the most recent version of the UK Standard Industrial Classification (SIC) of 2007. (Office for National Statistics‚ 2007) Although different
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The Motorcycle Industry Definition Motorcycles fall into the category called Recreational Vehicle‚ Motorcycle and Boat Retail Industry. These are companies that retail recreational vehicles‚ boats‚ motorcycles‚ jet skis‚ and/or related accessories. In Hoover’s classification‚ based on the North American Industry Classifications System (NAICS) and the older U.S. Standard Industrial Classification (SIC) system‚ motorcycles fall under a smaller subcategory called Motorcycle‚ ATV‚ and Personal
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Industry Clustering using the Value Chain Approach Transforming Relationships to Increase Competitiveness and Focus on End Markets Undersecretary Merly M. Cruz DTI-Regional Operations Dev’t Group 12 March 2012 OUTLINE OF PRESENTATION I Introduction (Concept‚ Legal Basis) II Value Chain as a Tool III Industrial Governance Framework IV National Industry Cluster Capacity Enhancement Project (NICCEP) V Sample Application (Coco Coir & Peat) Industry Clusters are groups of competing
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status of social networking sites industry. Through analyses of industry in the UK market‚ the report also tries to forecast the future development of the industry. The objectives of the report are as follows‚ to probe the industry‟s remote environment by use of a PEST analysis tool; to analyze the industry structure and competition intensity using Porter‟s five forces; to make utility of the latest information to predict the development in the future as this industry is evolving fast and quite new
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