power point presentation

1. Define the relevant industry:

• What is the scope of products or services?
• What is the geographic scope of competition?

2. Identify five forces and assess the underlying drivers of each competitive force to determine which forces are strong and which are weak and why:

• Threat of entry
• The power of suppliers
• The power of customers
• The threat of substitutes
• Rivalry among existing competitors

3. Determine overall industry structures, and test the analysis for consistency:

• Why is the level of profitability what it is?
• Which are the controlling forces for profitability?
• Is the industry analysis consistent with actual long-run profitability?
• Are more profitable players better positioned in relation to the five forces?

4. Analyze recent and likely future changes in each force, both positive and negative:

• Shifting threat of new entry?
• Changing suppliers and buyer power?
• Shifting substitution threat?
• New base of rivalry?

5. Develop a strategy for enhancing your company’s long-term profits with three possibilities for strategic action:

• Position your company where the forces are weakest
• Exploit changes in the forces
• Reshape the forces in your favor