1. Michael Porter Competitive Strategy
Techniques for analyzing industries and competitors

2. The Porter Model Potential Entrants Threat of Substitute
The Model
Potential Entrants
Bargaining Power of Suppliers
Industry Competitor
Bargaining Power of Buyers
Threat of Substitute

3. Industry Competitor Competition Drives Down the Rate of Return
Consolidated Industries, Little Room for Mistake Among Rivals
Lack of Differentiation or Less Switching Cost
Merger and Acquisition Increases Competition
High Strategic Stake in Achieving Success for Each Company
Economies of Scale is Crucial
Strategic Alliances and More

4. Threat of Entry Economies of Scale by Businesses Product Proliferation
High Capital Requirement for Investment
High Switching Cost for Customers
Cost Advantage by the Established Businesses/ Price as a Barrier
Access to Viable Distribution Channels
Government Regulations

5. Threat of Substitute
Lack of Differentiation Among Various Existing Products
Low Switching Cost for Customers
Innovation in the Industry and less Innovated Products
Brand Names and Quality of Products
Weak Distribution and Customer Service
Fragmented Industries More Prone to Differentiated Products

6. Bargaining Power of Buyers
Price a Fraction of Buyers Cost, Buyers less Price Sensitive
The Switching Cost is Low. Availability of Similar Products in the Market
Forward and Backward Integration Lessens the Bargaining Power of Buyer. Self Manufacturing and Self Distribution by Car Industry
The Information of Buyer on the Market, Demand, Competition and Market
Wholesalers as Buyers can Impose Bargaining Power Over Suppliers
When Customers decision on Buying can be influenced by Retailers

7. Bargaining Power of Suppliers
When the Industry is Dominated by a Few Suppliers
When the Supplier Competes with Alternative Supply and Suppliers
When the Supplier Sells not to one Industry but More
The Supplier's Product is Crucial to Producer's Product
The Suppliers Product is Well Differentiated
The Supplier Threat of Forward Integration Exists
Government Influence in the Industry for Substitute Product

8. Strategic Group Within an Industry
Strategic Groups are Leading Companies in an Industry. They Have Reached Economies of Scale and Occasionally Scope
Entry Barriers are Imposed mostly by Strategic Group in an Industry
Mobility Barriers Are determined by Skills, Resources, Strategies and Cost
Strategic Groups Have Different Amount of Power vis-à-vis Buyers and Suppliers
Strategic Groups are Exposed to Substitute Products for Product Line, Differentiation, Demographic Change, Customers……

9. Consolidating a Fragmented Industry
Creation of Economies of Scale
Standardization by Innovation
Rectify the Problem of a Fragmented Industry by Looking at the Causes. For Example Diseconomies of Scale
Initiate Acquisition and Merger
Explore and Investigate the Industry Trends in terms of Customer Needs and Innovation
Firms that Cannot help Consolidating an Industry are the Ones with Lack of Skills, Myopic, not Aware of the External Environment, and Organizationally not Ready