The Value Chain and Evaluating the Industry

Read these sections on the value chain and Porter's five forces. While you read, think about the impact information technology can have on these concepts.

Evaluating the Industry

Key Takeaway

  • "How much profit potential exists in our industry?" is a key question for executives. Five forces analysis provides an answer to this question. It does this by considering the interactions among the competitors in an industry, potential new entrants to the industry, substitutes for the industry's offerings, suppliers to the industry, and the industry's buyers.