This report conducts an initial Industry Structural Analysis (ISA) based on the framework developed by Dr. Michael Porter of Harvard Business School and detailed in his "Competitive Strategy" text. The ISA framework characterizes the profitability of an industry being dependent on the strength and sources of five predominant forces: (1) the threat of entry by potential entrants, (2) the intensity of rivalry among existing competitors, (3) the pressure from substitute products, (4) the bargaining power of suppliers, and (5) the bargaining power of buyers. The threat of entry by potential entrants is dominated by seven barriers of entry categories: (ⅰ) economies of scale, (ⅱ) product differentiation, (ⅲ) capital requirements, (ⅳ) switching costs, (ⅴ) access to distribution channels, (ⅵ) cost disadvantages independent of scale, and (ⅶ) government policy. This analysis intentionally avoids identification of specific firms or detailed proprietary data within the commercial suborbital research market with the intent of avoiding financial or political sensitivities that may be held by members of the industry. An analysis of this nature is not intended to be "the final word" but a starting point for a discussion by interested members of the industry using a well-defined, baseline structure and vocabulary to facilitate a better understanding and comprehension of the analysis' observations.
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