A key insight from your Textbook and Porter $(1996)$ is that industry structure $($all else being equal$)$ determines a firm's business strategic position that subsequently impacts firm advantage and firm performance if any. As the key module figure depicts, this module emphasizes the relationship between industry structure, business strategic position, and firm advantage and performance.

It is insufficient to merely 'memorize' the industry structure $->$ firm business strategic position $->$ firm advantage relationship for example. You must understand the economic logic of why for example firm advantage and performance will be unlikely and low, respectively if industry structure is unattractive.

To this end:

Consider a focal industry with one immediate upstream industry, two immediate downstream industries, and two horizontal industries.

How many forces must be analyzed?

List each force and discuss why it must be analyzed.

Consider the following figure adapted from textbook Figure $5\mathrm{.}7$:

Select a vertical force.

It increases from low to high.

How does this figure change? Why?

What is the effect on industry structure? Be specific and discuss.

Select a different vertical force. It decrease from high to low.

How does this figure change? Why?

What is the effect on industry structure? Be specific and discuss.

Select a horizontal force. It changes from low to high.

How does this figure change? Why?

What is the effect on industry structure? Be specific and discuss.

In short, industry structure $($e$.$g$.,$ unattractive, attractive, or somewhere in between$)$ is most associated with a key concept depicted in this figure.

What is this key concept?

Be specific and discuss why.

It is strongly suggested that you number your responses.