1 Porter’s Five Forces: Industry Structure

1. Threat of entry: ie pharmaceutical industry expiration of patents

2. The power of suppliers: ie the growth of mobile industry is increasing
power of suppliers of rare earths
3. The power of buyers: ie: consolidation of food retailers in large super-
market chains
4. The Threat of substitutes: ie: mobile phones are in the path of sub-
stituting almost any electronic gadget..
5. Rivalry among existing competitors: more mature industries seem to
have more rivalry, mergers,

2 Developing Strategy

Understanding the industry to compete and the forces that shape industry
competition is the starting point for developing strategy. The equilibrium
of the five forces define the industry structure. Understanding, monitoring
and anticipating the evolution of forces is a crucial point.

2.1 Michael Porter

1. Cost leadership
2. Product Differentiation
3. Specific Market Niche

1
2.2 Clayton Christensen Innovation

1. Sustainable Innovation
2. Disruptive Innovation

2.3 Kim - Mauborgne INSEAD

1. Red Ocean
2. Blue Ocean

2.4 Environment, Social & Governance, ESG

1. Profits & Social Value

2. Long Term vs Short Term

2.5 ...