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Industry Analysis
Intra- Bargaining
Bargaining Industry Rivalry Power of the
Power of Suppliers Strategic Business Buyers
Unit
How strong is the position of the How strong is the position
suppliers? Are there many? Few? of the buyers? Can we sell
Monopoly? in large volumes? Do we
need to discount heavily?
Source:
Substitute Products
Michael E. Porter “Forces and Services
Governing Competition in How easy or hard it is for
a new product or service to replace what already exists?
Industry (Harvard Business
Review, Mar.-Apr. 1979)
Internal Rivalry
Entry Ability to cut price in Customer loyalty can Focusing develops core
retaliation deters potential discourage potential competencies that can act
Barriers entrants. entrants. as an entry barrier.
Customers
Competitors and
NBA
NFL
NHL
Sports betting
Professional Sports: Supplier Power
Unionized players
For new players NCAA has been a benign
supplier
Cities spend tax dollars to build facilities to
attract sports teams.
As municipal finances get tighter,
subsidizing teams becomes more difficult.
Professional Sports: Buyer Power
radio.
Five-Forces Analysis of Professional
Sports Leagues