Challenged Q 2 – Case Study Example

1) I would definitely lend him money, though bound by strict legal and commercial guarantees. The reasons for lending money to my friend range from the potential gains from the local investment in a place where there is much scope for a pizza restaurant.
2) The reason for buyers being mentioned as a threat as well as an opportunity is because the buyers represent purchasing power as well as movement away from the brand or product if their needs are not met. Hence, buyers can be a threat and the need to satisfy the buyers arises from this simple fact.
3) The five forces model is usually expanded to include one or more variables in the analysis. In this respect, the role of the government can be included as a potential variable. However, if one desires not to include government, then the same can be accommodated as part of the external environment analysis.
4) If an industry has a higher number of complementors, the way in which the complementors are assessed make the industry attractive or unattractive from the point of view of the Porter Model. Hence, the attractiveness or otherwise of the industry depends on how well the complementors are assessed.
5) It is certainly a fact that there are very few industries that can be considered unattractive. This is because the existence of markets for goods ensure that any industry can be a target for investment and hence attractive from the perspective of investors.
6) The product life cycle analysis makes it clear that the stages follow the cycle from maturity to decline. There are a few industries where there is ample growth for a prolonged duration and hence some of these do not exhibit the usual cycle in the familiar pattern. However, it is indeed the case that eventually all industries plateau off.