2. The Porter Framework McIntire Investment Institute Presented by Michael Rosete

3. What is the Porter Framework? Technique developed by Michael Porter Used to assess the competitive position of a company Reveals how customers, suppliers, potential entrants, and substitute products are less obvious competitors

4. Supplier Power Threat of Substitutes Threat of New Entrants Industry CompetitionBuyer Power

5. Supplier Power Threat of Substitutes Threat of New Entrants Industry CompetitionBuyer Power

6. May I Play? Also known as Barriers to Entry Economies of scale Product differentiation Capital intensity Government policy Threat of New Entrants

7. Supplier Power Threat of Substitutes Threat of New Entrants Industry CompetitionBuyer Power

8. Bargaining Power Determine pricing and quality Switching costs Number of available suppliers Forward integration Supplier Power

9. Threat of Substitutes Threat of New Entrants Industry CompetitionBuyer Power

10. The Other Side Buyer concentration Product differentiation Switching costs Value added Backward integration Buyer Power

11. Supplier Power Threat of Substitutes Threat of New Entrants Industry CompetitionBuyer Power

12. Alternatives Price/Performance tradeoff Current and future Switching costs Substitute improvement Threat of Substitutes

13. Supplier Power Threat of Substitutes Threat of New Entrants Industry CompetitionBuyer Power

14. Rivalry Number of competitors Industry growth Product differentiation Competitor diversity Exit barriers Industry Competition

15. Supplier Power Threat of Substitutes Threat of New Entrants Industry CompetitionBuyer Power

16. Recap Systematic industry and competitive analysis Customers and suppliers are friends and foes Always worry about new entrants and substitutes NEVER think that competitors do not exist

17. Any Questions? Thank you.