From the course: Strategic Planning Foundations
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Assessing the market
- As you begin your strategic planning process, it's important to assess the market you're competing in. A classic tool for doing so is Porter's five forces. Dr. Michael Porter, who's a professor of strategy, came up with this set of five forces to evaluate all the different dynamics that can affect your organization. First, look at competitive rivalry, how many competitors are in the marketplace? How do they behave? How are they distributed by market share? How do they go to market, what are their core competencies? Second, look at the threats of new entry. So there's the existing set of competitors or there are new competitors who will enter the market. Evaluate how much does it take to get into the market? Will I have to build huge factories or can I just launch a website to compete against you? So understanding those threats of new entry. Next, look at the threat of substitution. You have your products, what other…
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