Job Safety Analysis Form

Job Safety Analysis Form

Job Safety Analysis Form

Being diligent your first move in forming a strategy is to perform a full analysis of the market. Porter’s five forces method may not be perfect but it should be up to the job.

Marketplace Quantification

The analysis turns up the following –

  1. Bargaining power of customers – In this scenario, you find that the sources of supply are very limited, so the customer has little scope for negotiation.
  2. Bargaining power of suppliers – The supply position is dominated by one family of companies.
  3. Threat of new entrants –The market is ripe for competition and you intend to be the first to break ground. You take into account the fact that once you make headway, others will follow. You pitch your pricing accordingly. But, the first determinant of force under this heading is ‘Existence of barriers to entry’. You start to wonder why there are so few players in this game.

Only three steps in and the five forces analysis already indicates that the market may be effectively blocked for new entrants. The alarm bells started dinging in the back of your head as soon as you realize how narrow the competition is.