Porter's 5 Forces Essay

1823 Words8 Pages
In this essay I will write about what is the industry analysis, how’s firm use them to create competitive advantage. First, the industry analysis is used to make the business strategy. Business strategy is about creating or maintaining competitive advantage. The term competitive advantage is the ability gained through attributes and resources to perform at a higher level than others in the same industry or market (Christensen and Fahey). A firm is said to have a competitive advantage when it is implementing a value creating strategy not simultaneously being implemented by any current or potential player” (Barney 1991). Successfully implemented strategies will lift a firm to superior performance by facilitating the firm with competitive advantage to outperform current or potential players (Passemard and Calantone). To gain competitive advantage a business strategy of a firm manipulates the various resources over which it has direct control and these resources have the ability to generate competitive advantage (Reed and Fillippi). Superior performance outcomes and superiority in production resources reflects competitive advantage (Day and Wesley). All above saying is keep ahead in the competitions, thus better performance. By analyzing customer needs and preferences and the ways in which firm compete to serve customers, it will identify the general sources of competitive advantage in an industry. Industry analysis is a tool that facilitates a company's understanding of its position relative to other companies that produce similar products or services. Industry analysis enables business owners to identify the threats and opportunities facing their businesses, and to focus their resources on developing unique capabilities that could lead to a competitive advantage. Understanding the industry and foreseeing its future trends and directions gives you the knowledge you
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