In conducting the analysis avoid
the following common mistakes:
• Defining the industry too
broadly or too narrowly.
• Making lists instead of engaging
in rigorous analysis.
• Paying equal attention to all of
the forces rather than digging
deeply into the most important
ones.
• Confusing effect (price sensitiv-
ity) with cause (buyer econom-
ics).
• Using static analysis that ignores
industry trends.
• Confusing cyclical or transient
changes with true structural
changes.
• Using the framework to declare
an industry attractive or unat-
tractive rather than using it to
guide strategic choices.