A friend of yours from college, who you haven’t talked to in three years, sends you an email asking you to meet him for lunch. He says he’s got a great idea for a business and wants to run it by you. At first you’re hesitant because your friend, while obviously intelligent, doesn’t always think things though. You agree to meet for lunch and talk about the idea. At lunch he explains that he’s been developing new flexible screens for his employer that are incredibly tough, waterproof, and use very little energy. His idea is to use these new flexible screens to create wearable computing clothing that can connect directly to smartphones and push ads, promotions, and video. His only problem is that he knows nothing about business. He’s not sure where to start.

a. Explain how you could use the five forces model to help your friend understand the potential success of his wearable flex screens.

b. How might understanding the unique forces affecting this industry determine the competitive advantage for your friend’s new company?