Industry Term Paper

You will notice that Besenko et. al.’s “The Economics of Strategy”, posted on Canvas as a pdf file, reviews Porter’s Five Forces Model (as well as Brandenberger’s Value Net Model). At the end of the chapter, the authors applies Porter’s framework to three different industries. Notice also at the end of each case the authors present a table assessing each component of Porter’s framework and the potential challenges for the industry. Using these three cases as examples (as a template to follow if you will), you are to select an industry of interest and write your own industry analysis.

SAMPLE SOLUTION

The Porter’s five forces model is critical in evaluating how competitive a given business is in the market. The model helps to identify where power lies in any given business situation and hence underscoring the possible competitive advantage the business has in any given industry as will be demonstrated using the Coffee sector in the US.
The Coffee Industry Analysis
The US coffee industry is one of the booming industries in the US with notable investors such as Starbucks banking on the US coffee culture to increase investment. It is consumed as a favorite beverage by majority of US citizens of all ages. Globally, the coffee industry collects an average of $ 100 billion each year in terms of revenue. The US coffee market is projected to grow at an average CAGR of 4.8% within the 2020-2025 forecast period with the major factors driving the growth being the changes in lifestyle and the people’s long working hours. This growth is set to entice many investors and offer…