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Global Machinery Industry: Porter’s Five Forces Strategy Analysis

  • January 2014
  • -
  • Aruvian's R'search
  • -
  • 15 pages

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The global machinery industry can be defined as including mining equipment, construction equipment and agricultural equipment. Though the global machinery industry witnessed a decline during the economic recession years of 2008-2009, the industry has since then recovered and has been posting good growth rates during the years leading up to 2012.

Aruvian Research analyzes the Global Machinery Industry in Michael Porter’s Five Forces Analysis. It uses concepts developed in Industrial Organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Porter referred to these forces as the microenvironment, to contrast it with the more general term macro-environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a company to re-assess the marketplace.

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