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Porter 's Five Forces Framework

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5 forces analysis
Porter 's Five Forces Framework is a tool for analyzing competition of a business of an industry in terms of its profitability. The most unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit levels. The five-forces perspective is associated with its originator, Michael E. Porter of Harvard University. This framework was first published in Harvard Business Review in 1979.
Each industry generates profits, and the industry competes against 5 competitive forces for the profits. If left unchecked, the industry’s entire profits will be siphoned off making it irrelevant economically.
Those 5 competitive forces
1. Threat of New Entrants
2. …show more content…

Profitable industries that yield high returns will attract new firms. New entrants eventually will decrease profitability for other firms in the industry. Unless the entry of new firms can be made more difficult by incumbents, abnormal profitability will fall towards zero (perfect competition), which is the minimum level of profitability required to keep an industry in business.
With the Investment and the purchase of Disney of Lucasfilm of 4.05 billion USD, this has caused a new threat to entrant of Disney to be a much bigger player in the Movie industry and a new player in the Sci-Fi movie industry. This Disney stock has more than doubled since the Star Wars acquisition, which means it’s outpacing a growing market by an additional 50 percent. This has caused the market to be more expensive and more competitive where the competitive part is good however the products would be more expensive and other Sci-Fi films might not be able to match it if its budget are too low.
Here lies the largest threat to Hollywood related movies like Star Wars. Once upon a time, they defined our sense of entertainment. Once upon a time, they created for us a subculture of ideas and expectations. Remember the in the previous Star Wars movie that there were flying cars and bikes and showed us that humans have the “Force”

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