Reference no: EM131295495

Thank you for your reply. Below are the details for the Industry Analysis Paper,  I have chosen Microsoft and your help is appreciated.

Industry Analysis Paper

The fundamental assumption of this assignment is that the profit potential of any firm is a function of:

(1) the industries it operates in; and

(2) the competitors it opposes.

Therefore, to enhance profits, executive management must understand the industry structure and competition. The profits within an industry are affected by a wide range of influences, including the macroeconomic environment, cost and demand structures of the industry, technological change and government regulation. Competitive moves and responses of incumbents also affect firm profits. Actions taken by firms to improve competitive position engender responses by other firms, and the expected sequence of actions and responses must be understood to develop an effective strategy. Reactions of rivals will depend on their goals or intent, beliefs, relative resource positions and past actions. Thus, the approach to studying the dynamics of industry structure and competitors is to focus on the key characteristics of industry structure and the individual competitive moves and countermoves by the competitive players. Using the components of a competitive analysis model (e.g., Porter, Blue Ocean) you will select two companies in an industry in which you have some interest or familiarity. In a 7-10 page paper, you will critically analyze and contrast the competitive strategy of the two companies and then develop a competitive profile for each. The competitive profile should answer the following questions:

1. What is each company's current competitive strategy (be specific)?

2. What are they doing to improve their current competitive position?

3. What likely moves or strategy shifts will they make?

4. Where is each company most vulnerable?

5. What competitive moves will provoke the greatest and most effective retaliation by each company?

6. Would you recommend the continuation or modification of each company's current strategy (support your rationale with specifics)? 

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