Reading 32: The 5 Competitive Forces That Shape Strategy

Question 0

describe why industry growth rate, technology and innovation, government, and complementary products and services are fleeting factors rather than forces shaping industry structure;

Answer 0

Are fleeting because:

Question 1

Distinguish among the five competitive forces and explain how they drive industry profitability in the medium and long run

Answer 1

1. Threat of new entrants
2. Buyer power
3. Supplier Power
4. Rivalry of existing competitors
5. Threat of Substitution

Question 2

identify changes in industry structure, and forecast their effects on the industry’s profit potential;

Answer 2

:

Question 3

explain how positioning a company, exploiting industry change, and shaping industry structure

Answer 3

1. Positioning:
2. Exploiting industry change
3. Shaping industry structure