According to Porter, there are main five approaches of analysis that might complete the picture of a company’s work: competition in the industry, potential of rivals, powers of suppliers and customers, and possible threats connected to the products. Every point might help to identify general situation on the market, customers, and rivals. It might help to identify company’s risks and abilities. Companies, their popularity, and the way of entering the market might help to evaluate the current and future competition. On the other hand, the main companies and their potential should be analyzed separately to identify if the market might be captured by any dominating company. At the same time, analyzing market should include analysis of customers and suppliers separately: customers should be analyzed from the side of the consumer ability and its stability; the limited suppliers might influence the level of prices seeing the great demand for their rough products. Moreover, the analysis of the substitute products and threats connected to it also play the main role for providing goods/services and gaining.
The answer (the analysis) must be on an “industry
1- Read CH3.
2- Adjust the analysis above with an industry
