Session 14: Equity Analysis and Valuation Reading 59: Introduction to Industry and Company Analysis
LOS i: Discuss the principles of strategic analysis of an industry.
The competitive forces identified by Michael Porter include:
A) |
rivalry among existing competitors and bargaining power of buyers. | |
B) |
threat of substitute products and rivalry among suppliers. | |
C) |
bargaining power of existing competitors and threat of new entrants. | |
Porter’s five competitive forces are: (1) rivalry among existing competitors; (2) threat of new entrants; (3) threat of substitute products; (4) bargaining power of buyers; (5) bargaining power of suppliers. |