Exhibit 4: Five Forces Model. Industry Competitors. Intensity of Rivalry. Five Forces Model - Summary. Nearly all of the forces are present in most industries, but it is the intensity of the forces that will determine their impact on any industry.
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broad vs. narrow scope.
Identify segmentation variables
Reduce to 2 or 3 variables
Identify discrete categories for
Potential for economies
of scope across segments
Similarity of KSFs
Product differentiation benefits
of segment focus
*OEM/replacementThe Basis for Segmentation: Customer and Product Characteristics
of the Buyers
*Inputs used (e.g. raw materials)
*Pre-sales & post-sales services
of the Product
A strategic group is a group of firms in an industry following the same or similar strategy.