[Verse 1]
When analyzing industries, we start with classification
GICS and ICB help us find the right location
Global Industry Classification Standard shows the way
ICB is Industry Classification Benchmark for today
Eleven sectors in GICS, then industry groups below
Sub-industries and industries help the knowledge flow
[Chorus]
Five forces, five stages, that's the way we analyze
Embryonic to decline, watch the industry life cycles rise
Suppliers and buyers, substitutes and rivalry too
Entry barriers complete Porter's framework for you
G-I-C-S and I-C-B, classify what you see
Build your peer groups carefully for equity
[Verse 2]
Industry life cycle starts when it's embryonic stage
High uncertainty and risk, companies engage
Growth stage follows next with rapid expansion
Market acceptance grows across the nation
Then comes shakeout time when competition's fierce
Weaker players exit as the market clears
[Chorus]
Five forces, five stages, that's the way we analyze
Embryonic to decline, watch the industry life cycles rise
Suppliers and buyers, substitutes and rivalry too
Entry barriers complete Porter's framework for you
G-I-C-S and I-C-B, classify what you see
Build your peer groups carefully for equity
[Verse 3]
Mature stage brings stability, growth rates slow down
Market's saturated now in every town
Decline stage is final when demand keeps falling
New technology or trends come calling
Porter's five forces help us understand the game
Competitive intensity won't ever be the same
[Bridge]
Bargaining power of suppliers can squeeze the margins tight
Buyers with more power keep the pricing right
Threat of substitutes can steal market share away
New entrants bring fresh competition every day
Rivalry among existing firms sets the competitive pace
Strategic positioning helps each company find their place
[Chorus]
Five forces, five stages, that's the way we analyze
Embryonic to decline, watch the industry life cycles rise
Suppliers and buyers, substitutes and rivalry too
Entry barriers complete Porter's framework for you
G-I-C-S and I-C-B, classify what you see
Build your peer groups carefully for equity
[Outro]
Peer groups need similar business models and size
Same geography and markets to make the best buys
Competitive strategy analysis shows how firms compete
Cost leadership or differentiation makes the picture complete
Industry analysis gives us the foundation strong
For equity valuation, we've been learning all along