Entrepreneurial Opportunity and Industry Analysis Report

This report provides an in-depth analysis of the tech furniture industry, focusing on its attractiveness and competitive dynamics. It begins with an introduction to the industry and the chosen company, followed by an examination of the industry's competitive landscape using Porter's Five Forces model. The report assesses the threat of new entrants, supplier power, buyer power, threat of substitutes, and competitive rivalry within the industry. It then addresses macro-level questions to evaluate the industry, defining the industry and assessing its overall attractiveness based on the five forces. The analysis concludes that the tech furniture industry holds a strong competitive position and is attractive, requiring significant investment to enter. The report highlights the presence of numerous rival companies and provides references to support the analysis.

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

choices. According to my point of view it is difficult to steal the market, as customers can
buy the substitute products according to their choices, they can be used in the place of
products which are offered by company.
 Competitive Rivalry: This factor relates to number of rivalry and their power to undercut
a company. When there is low competition in the industry then supplier can charge
higher prices for their products and when the competition is high then supplier had to
charge low prices for their products. According to my opinion the competitive rivalry is
intense as they are selling high quality and unique products to customers according to
their demand.
B) The Macro Industry test
1. What industry will you compete in? Define it carefully.
As per my opinion it has been concluded that furniture industry is where we want to
compete. In the present scenario, tech furniture is chosen as the base company which provide
high quality and unique products and services to their customers. Company offer high quality
services along with world class interior designing solutions (George and et. al., 2016). Along
with this, company use best quality raw material in order to produce unique home furnishing
goods.
2. Based on all five forces, what is your overall assessment of this industry? Just how attractive
or unattractive is it?
After conducting an analysis on porter’s five force model, it has been analyzed that it is
the industry which provide high quality services to their customers and gain competitive
advantages at the marketplace. It has also been analyzed that home furnishing industry is quite
attractive which grab attention of large number of companies. Along with this, it has been
identified that with the help of this factor, industries will be able to know their competitive
position at the marketplace.
CONCLUSION
With the help of above mentioned report, it has been determined that tech furniture
industries having strong and competitive position at the marketplace. Along with this, it has also
been identified that it is the industry which is highly attractive as well as requires huge amount of

investment while entering into the similar sector. In addition to this, it has been analyzed that
there are large number of companies which acts as a rivalry company for the chosen
organization.

REFERENCES
Books & Journals
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