I.

Macro Environmental Analysis Macro Trends Environmental Sector Social Technological Economical Political

Impact on the Industry

Opportunity/ Threat

II. Industry Analysis Threat of Entry (TOE) Item Brand loyalty commanded by incumbents Economies of scale in the business Capital requirement Buyers switching cost Easy access to input Govt. protection History of past retaliation Summary assessment of threat of entry and any other

Key TOE High-low High-low High-low High-low Yes-high Yes-low Strong-low particular observation

Power of suppliers (POS) Item Key POB # of suppliers relative to # industry players High-low Average buying volume of the industry per High-low transaction Suppliers do/ do not sell to other industries also High/ low Industry players can/ cannot buy from other supplier Low/ high industries for the same general need Cost (to industry players) of switching between High-high suppliers Industry players can/ cannot integrate backward into Low/ high the supplier industry Suppliers can/ cannot integrate forward into the High/ low industry Summary assessment of the power of suppliers and any other particular observation

Power of Buyers (POB) Item #buyers relative to # of industry players Buying volume per average transaction Industry players do/ do not sell to all buyer segments Buyers can/ cannot buy from multiple players Cost (to the buyers) of switching between players Buyers can/ cannot integrate back to the industry Industry players can/ cannot integrate forward Summary assessment of the power of buyers

Key High-low High-high Low/ high High/ low High-low High/ low Low/ high

POB

Threats of Substitutes (TOS) Item Key TOS Substitutability of the industrys product (availability High-high and comparability of substitutes price/ performance) Profitability of substitute products industry High-high Summary assessment of threat of substitutes and any other particular observation Intensity of Rivalry (IOR) Item Key IOR The industry is consolidated Yes/ low Demand growth in the industry High-low Some firms have excess capacity Yes-high Product differentiation High-low Buyers switching cost High-low Easy observability of prices and sale terms Yes-high Large and infrequent sales orders Yes-high Facilitating practices Absent-high Firms have different costs Yes-high Industry price elasticity of demand High-high Barriers to exiting business High-high Summary assessment of intensity of rivalry and any other particular observation

III. Strategic Group Analysis

IV. Segmentation Analysis