Good choice. You carefully read Michael Porter’s article and learn all about the five forces. Thinking about your own industry and the five forces, you realize…
The THREAT OF NEW ENTRANTS is high. Your industry is highly segmented and localized. Most circuses are small and privately owned. It means there can be a variety of marketing-mix with geographic, demographic, cultural factors. New circuses could easily appear.
The THREAT OF SUBSTITUTE PRODUCTS AND SERVICES is also high. Movies and TV especially make things a lot harder on you than they were when your grandfather began things 60 years ago.
The BARGAINING POWER OF SUPPLIERS is high. Your star performers and animal owners generate lots of ticket sales for you and they know it. You have no choice but to pay them well.
The BARGAINING POWER OF BUYERS is high and getting higher. You’re mainly marketing to kids, but you’ve had to start letting them in for free. Only the parents pay for tickets these days.
The INTENSITY OF THE COMPETITIVE RIVALRY is welcome area that’s only moderate. You do feel constant pressure to add more spectacular things in your show and everyone is trying to outcompete. However, the segmented and localized marketplace diminishes the intensity of the competition.
Well, the industry might not be attractive, but you’re smart and determined. You’ll find your way! Who is this young Michael Porter guy anyway?