Whenever questions pertaining to Porter's forces pop-up, I can't seem to ever get them correct. I can't "logic" my way through them. For example, a question says that the a high technology product created non-standardized products throughout the industry - which force classifies this? Well, non-standardized products means that the products differ; like an xbox vs PS4. Then I'd think; "there's high rivalry between those two products". Or maybe I'd think that because there's high-technology requirements, that it must be hard to enter the industry, meaning that there's a low threat of substitutes. But nope! Apparently the non-standardized products imply a LOW bargaining power of customers...
Can anyone ELI5 Porter's 5 forces? What makes an industry competitive? What makes an industry attractive? Is an industry being attractive the same as being competitive? Any tips to remembering things? Thanks!
Been asked for a SWOT. Since we'd be a new entry to the market, I feel a Porter would be more appropriate.
Is delivering both too much for one report? Will the other guy actually read it all?
I have to do a project on competitive strategy and innovation for a company. Thinking about using a MLB team because it would be a lot more fun. Anyone here familiar with Porter's competitive strategy? Was wondering how difficult it would be for an MLB team.
I'm not an investment professional or regulated to give any form of advice, so this is only how I do it (and not necessarily the best way). I am sure there are plenty of people who can offer some constructive criticism.
Thorough stock analysis is something people should do before buying any stock for investment. I've done the classic story stocks, jam tomorrow etc, and now looking to build some investment positions for the longer term.
I have a 15 step process which I'll explain in detail:
1. Find an idea
This can be from anywhere. I was surprised at how often ideas came from real life - I once got a Gear4 Music speaker from my parents for my birthday or Christmas - when I checked years later the stock had multibagged. I thought it was a cool product but didn't follow that lead. As Peter Lynch says "Behind every stock is a company - find out what it's doing".
Ideas can come from new brands/shops popping up, friends talking about works, the news, and more.
For example, the Guardian reported that many bars are already fully booked up for months. That suggests to me there will be a large tailwind in the hospitality sector with pent-up demand, so I may look to try and trade this.
2. Find the market capitalisation
This is important because elephants don't gallop. It's also harder to get an edge on larger companies, as there will be several teams of analysts covering the stock in detail.
The smaller companies get less attention, therefore the opportunity to outperform is greater (but risk also increased).
The calculation for market cap is simply share price * shares in issue.
I'll rarely look at stocks above £250m market cap - at the moment there are lots of small cap stocks that have slashed costs and are now leaner than they were pre-Covid.
3. Analyse the chart of the stock
Lots of investors say that charts don't matter. I find that hard to understand as the price charts tells me the money-weighted opinion of the stoc... keep reading on reddit ➡
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I attended a disruptive alternative school called Acton for high school. It is based around the idea of self-learning so there are no... keep reading on reddit ➡