Essay: Industry Analysis by Using Porter’s Five Forces Framework

Sample Essay

The industry analysis is performed by using the Porter’s 5 forces framework. The cumulative effect of the 5 forces as a whole can tell us whether the industry is conducive for performing business or entering a new market as is the case with M&S. The 5 forces are the bargaining power of buyers, the bargaining power of suppliers, the threat of new entrants, the threat of substitute products and the rivalry among competitors.

We discuss these five forces one by one in the following paragraphs to analyze the industries in which M&S will be operating in Italy. Bearing in mind that as previously mentioned, M&S operates in multiple industries such as clothing, electronics, home furnishing, entertainment products such as games and DVDs, food and wine category, and gifts and other categories as well, it will be impossible to analyze all these industries here. So the assumption is that M&S will initially focus on the clothing, house ware and gifts markets. We analyze these industries jointly as follows.

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