Firstly, in industry analysis using the 5F, we first have to define the industry that the organisation is in. To do this we focus on the product/service and product category that is provided by the organisation.

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Firstly, in industry analysis using the 5F, we first have to define the industry that the organisation is in. To do this we focus on the product/service and product category that is provided by the organisation. For example, McDonald's products are hamburgers and other side dishes. The product category is food. But if we define McDonald's as being in the food industry, that would be too broad, because supermarkets are also in the food industry and so are full service restaurants. But they are clearly not McDonald's competitors. If we define them as being in the hamburger industry, that would be too narrow, because KFC and other non-hamburgers fast food restaurants are their competitors. Therefore taking their competition into account, the best industry definition is somewhere in between, which arguably could be the fast food industry.

The same arguments are applied for Halogen. To say that they are in the charity business is too broad. Because clearly they do not compete with SPCA for example. They may compete with SPCA and other charities for funds, but NOT in terms of products/services rendered. Therefore, we have to ask ourselves what products/services they offer. You may want to consider youth development, youth care, or youth training as possible industries.

Secondly, the 5F framework was designed by Michael Porter very much with profit organisations in mind, in particular the manufacturing industries, e.g., TVs, cars, apparels, etc. When we apply it to other organisation type, we often have to make some adaptations and modifications. Such adaptations is entirely acceptable. In fact, if we adapt, and explain our adaptations, it is considered as exercising critical application, which is very good. For Halogen we can argue that both donors and beneficiaries are buyers. Donors are suppliers (of money) and are also buyers because Halogen have to sell them the value of what they are doing so that the donors will be convinced to donate. Other generic charities are also indirect competitors because they compete with Halogen for donor's money, not in product offering.   


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