STEPS:
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INDUSTRIAL ANALYSIS
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MACRO SITUATION ANALYSIS
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SITE ANALYSIS
-
PROJECT USES ANALYSIS
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MARKET ANALYSIS
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COMPETITOR ANALYSIS
-
FINANCIAL FEASIBILITY ANALYSIS
STEP #1:
-
INDUSTRIAL ANALYSIS
-
MACRO SITUATION ANALYSIS
-
SITE ANALYSIS
-
PROJECT USES ANALYSIS
-
MARKET ANALYSIS
-
COMPETITOR ANALYSIS
-
FINANCIAL FEASIBILITY ANALYSIS
Definition
:
- Also known as Porter’s Five Forces Analysis, is a very useful tool for business strategists. It is based on the observation that profit margins vary between industries, which can be explained by the structure of an industry.
- The primary purpose is to determine the attractiveness of an industry.
- The analysis also provides a starting point for formulating
INDUSTRY COMPETITOR
Rivalry among Existing Firm
POTENTIAL ENTRANTS
BUYERS
SUBSTITUTES
How to analyze:
- The framework for the Five Forces Analysis consists of these competitive forces:
1. Industry rivalry.
2. Threat of substitutes.
3. Bargaining power of buyers. 4. Bargaining power of suppliers. 5. Barriers to entry.
- Output:
- Company’s critical strengths and weaknesses. - Industry positioning.
- The strongest force (or forces) rules and should be the focal point of any industry analysis and resulting competitive
