The company that you are working for is considering buying another smaller firm. However, there is some business analysis needed for your company to make its final decision about purchasing. Throughout this course, you will be working on creating the Business Strategy and Management Plan.
Choose an aspect of the IT industry that has not been previously used as an example in this course.
Note: The mobile phone industry was provided as an example in the video material and may not be used as the subject for this assignment.
Use Porter's five forces to make a qualitative evaluation of the industry's strategic position. Be sure to explain each of the five forces as well as explain how they relate to your chosen industry.
Remember to include the following elements (Porter's five forces):
- Threat of new entrants: Are new entrants being attracted to the market, and are there barriers to entry in the industry?
- Threat of substitute products or services: Are there other products that could be alternatives to offerings in the chosen industry?
- Bargaining power of customers:What degree of bargaining power do the buyers have in terms of putting the industry under pressure to provide more products or less cost?
- Bargaining power of suppliers:What is the importance of raw materials, components, labor, and services that are required for the industry, and are there substitutes for those inputs? Discuss the possibility of switching suppliers, if necessary.
- Intensity of competitive rivalry:Does the industry have a sustainable competitive advantage?