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Issue:

Business

 

Written by:

Joseph N

 

Date added:

January 14, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 688

 

Was viewed:

9691 times

 

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Essay content:

This results in many new entrants, which will effectively decrease profitability. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards a competitive level (perfect competition). * the existence of barriers to entry (patents, rights, etc.) * economies of product differences * brand equity * switching costs or sunk costs * capital requirements * access to distribution * absolute cost advantages * learning curve advantages * expected retaliation by incumbents * government policies The intensity of competitive rivalry For most industries, this is the major determinant of the competitiveness of the industry...
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This results in many new entrants, which will effectively decrease profitability. Unless the entry of new firms can be blocked by incumbents, the profit rate will fall towards a competitive level (perfect competition). * the existence of barriers to entry (patents, rights, etc.) * economies of product differences * brand equity * switching costs or sunk costs * capital requirements * access to distribution * absolute cost advantages * learning curve advantages * expected retaliation by incumbents * government policies The intensity of competitive rivalry For most industries, this is the major determinant of the competitiveness of the industry...
displayed 300 characters

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