Discuss how the relationships between industry capacity and aggregate demand affect, competitive pressures in the industry, the movement of capital into an out of industries, and the type of innovation we would expect to see in the industry

List, define, and explain each of Porter’s five forces. Be sure to include how and why each force affects return rates in an industry. 3. Explain the concept of industry groups. Explain how the concept is useful for competitive analysis including the potential performance differences across groups.