Amazon Strategic management worksheet

WORKSHEET 2

ANALYZING COMPETITIVE FORCES IN AN INDUSTRY

EXTERNAL ENVIRONMENT

Source: Grant,R.M., Jordan,J., & Walsh,P.R. (2015). Foundations of Strategy (Canadian Edition). Wiley

PORTER’S FIVE FORCES MODEL

The Force	Step 1: Who?	Step 2; Strength (VW, W, M, S, VS)	Step 3: Justification & Impact (Use determinants from above)
Threat of Competitive Rivalry
Threat of New Entrants
Threat of Substitute Products/ Services
Threat of Supplier Bargaining Power
Threat of Buyers Bargaining Power and Price Sensitivity

Source: Adapted from Porter, M.E. (1979). ‘How competitive forces shape strategy’. Harvard Business Review, 57(2), 137-45; and the course text Thompson,A.A., Peteraf,M.A., Gamble,J.E., & Strickland,A.J. (2018) Crafting & Executing Strategy: The Quest for Competitive Advantage, 21e. McGraw-Hill

CONCLUSION ABOUT THE LIKELY IMPACT OF THE COMPETITIVE FORCES ON THE INDUSTRY (from the perspective of an incumbent firm)