Industry Analysis Assignment Example | Topics and Well Written Essays - 500 words

persistence Analysis - Assignment Examplen as Porters Five Forces Analysis, pertains to a exemplar for the analysis of the industry and the development of the business strategy given in 1979 by Michael E. Porter (Porter, 2008). It comprises of the quint forces which elaborate upon the competitive intensity and thus, determine the attractiveness of a market. The five elements of the industry analysis are explained belowThe entry of the newfound firms into market can be blocked in many ways. For instance, low-cost manufacturing or technological advancements can be few of the many barriers for the businesses. Besides this, there are policy-making barriers which block the entry of businesses into the international markets (Marvin, 1987). For example, the bagel industry in US experienced the flood of new companies entering the industry in 1996, which caused a sharp decline in the profit aspect of the industry. This belittled the attractiveness of the industry.One of the other featu res of the industry analysis includes the barriers to exit. It comprises of the legal obstacles, or the strategic significance which cabbage the business from leaving a market at the proper time. An example can be the instance of European oil industry. The exit barriers in the industry have been the outcome of environmental cleanup, high be of dismantles refineries, and employee layoffs. overdue to these factors, a very low level of profits exists which is the result of a persistent labor of extra capacity.In an industry, the businesses operate in two types of markets the market for outputs and the market for inputs. The transactions in two markets take place which are a source of value-creation for both suppliers and buyers. There are large customer groups which are equipped with the power to negotiate on better terms of trade and bargain on price. Moreover, they can switch the suppliers thus, increasing the market competitiveness. For example, in a pharmaceutical industry, t he buying power is low. Due to the patent protection,