Porter, 2008 - Analysing the Industry - Practical Advice

4 important questions on Porter, 2008 - Analysing the Industry - Practical Advice

When thinking of the Industry Analysis in practice, what do the strength of the competitive forces affect and what does this mean the forces are directly tied to?

The forces affect prices, costs and investments necessary to compete, directly tying the forces to income statements and balance sheets of industry participants.

As the forces are directly tied to income statements and balance sheets, what does this mean about the affect of the industry on margins?

Industry structure defines the gap between revenues and costs (margins).

How can the margins be expressed?

They can be expressed in quantities, which brings focus to the strategists.
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What does a good industry analysis include (instead of just pluses and minuses)?

It sees an industry in overall, systemic terms. Including which forces affect other forces and which might in the future.

The question on the page originate from the summary of the following study material:

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