| Format for APPENDIX - Porter's Five Forces Analysis |
| Forces & associated Determinants | Your 1-5 rating for each determinant & averages for Forces | Your justification for your 1-5 rating for each determinant |
| FORCE 1: Rivalry among competitors |
| DETERMINANT 1 for FORCE 1: Number of competitors: the industry consists of 10 firms, each having 10 % of the market by sales (cite source) | 4 | "Rivalry usually becomes more intense as competitors become more equal in size and capability and as the number of competitors increases from 4 or 5 to as many as 20 or 30." (Thompson, 2015, p. 39) |
| DETERMINANT 2 for FORCE 1: Industry growth rate: the industry grew at a rate of 30% each year, for the past 5 years (cite source) | 1 | "Rivalry is usually weaker when buyer demand is growing rapidly" (Thompson, 2015, p. 37) |
| DETERMINANT 3 for FORCE 1: Cost to customers in switching from one rival's to another rival's products: A recent article in the WSJ states that it can cost customers a very large amount to switch from one rival's products to another rival's products (cite WSJ article) | 2 | "Rivalry increases as it becomes less costly for buyers to switch" and vice versa (Thompson, 2015, p. 38) |
| DETERMINANT 4 for FORCE 1: Fixed costs: Analysts report that there are high average fixed costs for firms in this industry, which are typically greater than x% of total cost. (cite analyst report) | 4 | "Whenever fixed costs account for a large fraction of total cost, …firms come under significant pressure to cut prices" (Thompson, 2015, p. 52) |
| Overall strength of FORCE 1: Rivalry among competitors | 2.75 |
| |
| FORCE 2: Threat of New Entrants |
| DETERMINANT 1 for FORCE 2: WWW (cite source) | n | justification for rating = n |
| DETERMINANT 2 for FORCE 2: XXX (cite source) | m | justification for rating = m |
| DETERMINANT 3 for FORCE 2: YYY (cite source) | p | justification for rating = p |
| DETERMINANT 4 for FORCE 2: ZZZ (cite source) | q | justification for rating = q |
| Overall strength of FORCE 2: Threat of New Entrants | Avg of n, m, p, q |
| FORCE 3: Threat of Substitutes |
| DETERMINANT 1 for FORCE 3: WWW (cite source) | n | justification for rating = n |
| DETERMINANT 2 for FORCE 3: XXX (cite source) | m | justification for rating = m |
| DETERMINANT 3 for FORCE 3: YYY (cite source) | p | justification for rating = p |
| DETERMINANT 4 for FORCE 3: ZZZ (cite source) | q | justification for rating = q |
| Overall strength of FORCE 3: Threat of Substitutes | Avg of n, m, p, q |
| FORCE 4: Bargaining power of Buyers |
| DETERMINANT 1 for FORCE 4: WWW (cite source) | n | justification for rating = n |
| DETERMINANT 2 for FORCE 4: XXX (cite source) | m | justification for rating = m |
| DETERMINANT 3 for FORCE 4: YYY (cite source) | p | justification for rating = p |
| DETERMINANT 4 for FORCE 4: ZZZ (cite source) | q | justification for rating = q |
| Overall strength of FORCE 4: Bargaining power of Buyers | Avg of n, m, p, q |
| FORCE 5: Bargaining power of Suppliers |
| DETERMINANT 1 for FORCE 5: WWW (cite source) | n | justification for rating = n |
| DETERMINANT 2 for FORCE 5: XXX (cite source) | m | justification for rating = m |
| DETERMINANT 3 for FORCE 5: YYY (cite source) | p | justification for rating = p |
| DETERMINANT 4 for FORCE 5: ZZZ (cite source) | q | justification for rating = q |
| Overall strength of FORCE 5: Bargaining power of Suppliers | Avg of n, m, p, q |
| Overall strength of ALL five forces (= overall industry attractiveness) | AVERAGE of all Overall strength ratings for all 5 FORCES (the average of the averages) |
Ahmedovic21
FormatforPortersAnalysis.xlsx
