BUY WITH CONFIDENCE
BENEFITS OF DOCUMENT
DESCRIPTION
The COMPETITIVE INTENSITY of an industry is determined by five/six forces of competition
Porters five/six forces consist of HORIZONTAL and VERTICAL sources of competition
Barriers to entry protect established firms from the THREAT OF NEW ENTRANTS
The price customers are willing to pay depends, in part, on the THREAT OF SUBSTITUTES
BUYER/SUPPLIER POWER depends on the buyers price sensitivity and its relative bargaining power
For most industries RIVALRY between established firms is the major determinant for competition and general level of profitability
COMPLEMENTS increase the value of the product to its buyers
Example: Characteristics of an industry with a very HIGH COMPETITIVE intensity
Example: Characteristics of an industry with a LOW COMPETITIVE intensity
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Source: Best Practices in Porter's Five Forces PowerPoint Slides: Porter Five Forces of Competition PowerPoint (PPTX) Presentation, AnyStrategy
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