Book: Contemporary strategy analysis
With reference to Strategy Capsule 3.1, use the five forces framework to explain why profitability has been so high in the US market for smokeless tobacco. Do you think this profitability is sustainable? Why? or Why not?
HP, Canon, Epson, and other manufacturers of inkjet printers make most of their profits from their ink cartridges. Why are cartridges more profitable than printers? sing a high-profit industry and a low profit industry, use the five forces framework to explain why profitability has been high in one industry and low in the other:
High profit industry - Tobacco
Low profit industry - Telecommunications
For the high profit and low profit industry, it is possible to analyze each of all five forces of competition. However, to speed up the analysis it is best to concentrate on those forces of competition that are critically important in the industry under consideration.