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Essay

Five Force Model

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Issue:

Business

 

Written by:

Susan B

 

Date added:

April 10, 2014

 

Level:

University

 

Grade:

A

 

No of pages / words:

3 / 621

 

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942 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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