Slide ARS 406 W13 REAL ESTATE

STEPS:
- INDUSTRIAL ANALYSIS
- MACRO SITUATION ANALYSIS

- SITE ANALYSIS
- PROJECT USES ANALYSIS
- MARKET ANALYSIS
- COMPETITOR ANALYSIS
- FINANCIAL FEASIBILITY ANALYSIS

DECISION:
GO/NO GO

STEP #1:

- INDUSTRIAL ANALYSIS
- MACRO SITUATION ANALYSIS

- SITE ANALYSIS
- PROJECT USES ANALYSIS
- MARKET ANALYSIS

- COMPETITOR ANALYSIS
- FINANCIAL FEASIBILITY ANALYSIS

DECISION:
GO/NO GO

Definition:
- Also known as Porter’s Five Forces Analysis, is a very useful tool
for business strategists. It is based on the observation that profit
margins vary between industries, which can be explained by the
structure of an industry.
- The primary purpose is to determine the attractiveness of an
industry.
- The analysis also provides a starting point for formulating
strategy and understanding the competitive landscape in which
a company operates.

POTENTIAL
ENTRANTS

INDUSTRY
COMPETITOR
BUYERS

SUPPLIERS

Rivalry among
Existing Firm

SUBSTITUTES

How to analyze:
- The framework for the Five Forces Analysis consists of these
competitive forces:
1. Industry rivalry.
2. Threat of substitutes.
3. Bargaining power of buyers.
4. Bargaining power of suppliers.
5. Barriers to entry.
- Output:

- Company’s critical strengths and weaknesses.
- Industry positioning.
- The strongest force (or forces) rules and should be the focal
point of any industry analysis and resulting competitive
strategy.