A framework for analyzing industries

All the forces that shape competition in any given industry emanate from one of five areas.

(Source: Porter, Michael E., "Competitive Advantage". 1985 ISBN 0684841460).

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See also Entry Barriers

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Example

Summary Analysis: The Internet and its effect on Industry Structure

One interesting conclusion here is, in a generic sense (depending on the industry and the firm's specific Value Chain), that on balance the Internet tends to make business environment less attractive. Note there are more (-) factors than (+) factors in the diagram below.


(Source: Porter, Michael E., "Strategy and the Internet". Harvard Business Review, March 2001. You can buy and download this article in PDF format for $6.00 at http://harvardbusinessonline.hbsp.harvard.edu/b02/en/common/item_detail.jhtml?id=R0103D

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See also Strategic Space

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