Sample Thesis Paper
After the economic analysis is complete, the next step is to conduct an industry analysis of the industry in which the firm operates. This is usually accomplished by applying the famous Porter’s 5 Forces Frame work. The five forces – the bargaining power of customers, the bargaining power of suppliers, the threat of new entrants, the threat of substitutes, and the rivalry among competitors – are used to analyze an industry and its environment and the forces affecting the industry (Muller 2007).
The price data and the industry scenario are scrutinized in this stage of industry selection. The industry analysis also involves input from the economic analysis. If the economic analysis reveals a recession period, for example, some industries are more likely to be affected than others by the recession. The investor would have to narrow down to those companies which are least affected by the recession and then finalize the industry in which to invest by applying the aforementioned Porter’s Model (Schwager and Turner 1995).