Entrepreneurial Opportunity - Tech furniture

Entrepreneurial
Opportunity

Table of Contents
INTRODUCTION........................................................................................................... 3
Five macro-level questions to assess your industry...................................................3
The Macro Industry test.............................................................................................. 4
1. What industry will you compete in? Define it carefully...........................................4
2. Based on all five forces, what is your overall assessment of this industry? Just
how attractive or unattractive is it?........................................................................4
CONCLUSION ............................................................................................................. 4
REFERENCES............................................................................................................... 6

INTRODUCTION
Industry attractiveness refers to magnitude and method of making money and profit, in
context of risk associated within the products and services offered by industrial sector. In the
present report, Tech furniture is chosen as a base industry so that the report will be conducted in
an effective manner (Assaf and Agbola, 2014). It is an industry which is one of the most
prominent player deals in furniture from last 1.5 decades. In this report, two elements are going
to be discussed which includes how competitive is the industry as well as macros industry test.
Five force model is the basis of all these questions.
A) Five macro-level questions to assess your industry
 Threat of Entry: It is the factor where new companies enter into the marketplace which
affects the overall profitability of the company in a negative manner. According to my
opinion, yes it is difficult for the companies to enter into this industry as the market is
based on pricing strategy as well as reduce their overall cost of the products. It has also
been said that, they will reduce threats of new entrants by producing innovative goods
and services (Karimi and et. al., 2016). Therefore, threats of new entrants are low in this
case. Supplier power: Suppliers are those who provide raw materials to the companies or
industries in order to manufacture their goods and services. Therefore, as per my point of
view, suppliers do have the power to set terms and conditions in order to maintain their
standards. In the present context of Tech furniture, bargaining power of the suppliers are
high as powerful and effective suppliers use the power of negotiating in order to extract
higher prices (Bowtell, 2015). Buyer power: Bargaining power of buyers implies that buyers have the power to demand
low or high price for the product quality. As per my opinion, yes buyer have the power to
set terms and condition when they are purchasing the product in bulk quantity or large
number of substitute products are available. In case of Tech Furniture, they provide
unique furniture design products to their customers. Threat to substitutes: This factor implies that large number of similar products are
available at the market place and customer can buy the products according to their