We base our investment decisions on the markets and customers for which a product or process is intended. We pay special attention to the advantages that the customer draws from consuming a specific product or implementing a specific process.
Companies calculate their market potential based on such considerations. We have used Michael Porter’s “Five Forces” model to analyze market dynamics. According to Porter, five factors have a decisive influence on a company’s competitiveness:
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bargaining power of the suppliers
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bargaining power of the clients
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threat of substitutes
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competition within a specific industry
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barriers to enter a specific market