Michael Porter's Five Forces Model

Step six is to approach the correct industry. An industry has sub-parts. For example, if you look at the chemical industry, you will find sub-industries like Fertilizers, Pesticides, Paints and Varnishes, Organic chemicals. Therefore, it is important to focus on the relevant industry. Without this, it will be impossible to draw an accurate industry analysis report. It can also be time consuming if industry is done on all the parts of the industry. It is easier to take up an industry and find out the sub-industries. Select the one which suits the company’s purpose. Moreover, it is worthwhile to look at the different market segments in a particular industry. Another step involves checking the demand and supply of the industry. As any economist …show more content…
In this, you need to study the competitive scenario using Porter’s Five Forces Model. The model acts as the framework of industry analysis. Michael Porter, a famous strategist and author, first came up with this model. In this model, five parameters are analyzed to see the competitive landscape. Any industry analysis report isn’t just about studying the particular industry on a micro-level. The analyst needs to incorporate influencing factors at the macro-level. These macro-level factors include recent industrial developments, innovation in your industry analysis report, sector valuations and global comparative valuation. Porter, M. …show more content…
It includes those that fill one or two of the functions provided instead of the whole package. Nikon and Apple are competitors when it comes to cameras, but you could put companies like Apple and Google in a Porter’s five forces for a multitude of industries because their technology reaches into almost every industry in some sense. An industry analysis is a complicated and time consuming process. If any of the dimensions are missed, the whole analysis becomes