Conduct a fi ve forces model for the industry of your choice (except airlines).

Clearly defi ne your industry before you begin (in other words, how broadly are you defi ning your industry?). To guide your analysis, begin with the bargaining power of buyers and suppliers. Who are the buyers and suppliers? Discuss whether they have bargaining power. Who are your competitors? What are the barriers to entry into this industry? What other substitutes limit the sales and profi ts for fi rms in this industry? When discussing the implications of your fi ve forces model, ask yourself the following questions:

a. Which forces of competition are most threatening now? Which do you expect will change over the next fi ve years?

b. What are the implications in terms of profi t margins in the industry today? Over the next fi ve years?

c. What actions does this analysis suggest a current industry player should implement in order to strengthen their competitive strategy?