Explain Competitive Forces Model

The five competitive forces in an industry are the Competitors, New entrants (the ease of which new entrants can compete with established firms), Substitute goods and services, Customers, and Suppliers.

I was thinking of the electronics or computer industry.

The concept of industry attractiveness is a direct reflection of how it is affected by the five main competitive forces within an industry. Your assignment begins by choosing an industry which interests you. Once you have chosen an industry, research the competitive forces utilizing periodicals, scholarly journal, the Internet, etc. Finally, you are to prepare a 4-5 page paper based upon your findings. Answer the following questions within your paper:

1. How evident is the bargaining power of suppliers and customers within the industry?

2. What is the threat of substitute goods/services or of new competitors (new entrants)?

3. What is the level of rivalry among existing firms within the industry?

4. What are the political/legal forces that are inherent in the industry?

5. How do technological forces influence changes within the industry?

6. And finally, is this a seemingly attractive industry for a company looking to enter into a new business venture?