Porter’s Five Forces is a model used for understanding competitive advantage. In this assignment you will
choose a Fortune 500 company (APPLE, WALMART, AND AMAZON EXCLUDED) and identify Porter’s Five
Forces (with specific examples) for each force as you address the questions below. Please make sure you
label/subheading for each question that you address.
Refer to Figure 3.1 in Chapter 3 of your book. Projects are worth 25% of your final grade so please read the
- BRIEFLY DESCRIBE THE COMPANY (One Paragraph). What is the company’s mission statement?
- Who are their top competitors (List at least 3 and cite the source)?
- What are the barriers to entry in this industry (New Market Entrants)? How easy or hard is it for new
businesses to start-up in this industry that compete with your company.? - Who are their suppliers and who has control right now…..the supplier or the buyer (your company)? Explain
how. - What substitute products are available in this industry and how do these substitute products affect your
company? - Describe the type of customers your company attracts/serve. Who has the bargaining power for prices…the
customers or your company? Why? - Identify the market structure for this industry (Monopoloy, Oligopolopy, Monopolistic Competition, etc).
How does this affect price/competition for the industry? - Based on your answers above you should be able to determine if your company has a competitive advantage.
Answer and explain
Sample Solution