Industry Analysis

Industry Analysis - Industry Analysis Industry analysis is...

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Industry Analysis Industry analysis is a market assessment tool designed to provide a business with an idea of the complexity of a particular industry. Industry analysis involves reviewing the economic, political and market factors that influence the way the industry develops. Major factors can include the power wielded by suppliers and buyers, the condition of competitors, and the likelihood of new market entrants. Michael Porter has identified five forces that are widely used to assess the structure of any industry. Porter’s five forces are the: Bargaining power of suppliers, Bargaining power of buyers, Threat of new entrants, Threat of substitutes, and Rivalry among competitors. Together, the strength of the five forces determines the profit potential in an industry by influencing the prices, costs, and required investments of businesses—the elements of return on investment. Stronger forces are associated with a more challenging business environment. To identify the important structural features of your industry via the five
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Industry Analysis - Industry Analysis Industry analysis is...

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