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.
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.