4. Assess the overall industry structure and attractiveness.

• How attractive is the industry? Why?

• Which are the most important competitive forces?

Which control profitability?

• Are more profitable competitors better positioned in relation to the five forces?

For Emily several of the forces are quite strong, but some are relatively more important for profitability. In addition, some competitors, like large coffee chains, are better positioned versus the five forces than others. Emily wants to start a coffee shop and perhaps even try to grow the business into several outlets. She needs to consider the following steps and questions: