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porters five forces
Essay specific features
Written by:
Christine B
Date added:
August 27, 2011
Level:
University
Grade:
A
No of pages / words:
2 / 434
Was viewed:
2089 times
Rating of current essay:
Essay content:
The results is 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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Sometimes rivals compete aggressively and sometimes rivals compete in non-price dimensions such as innovation, marketing, etc.
* number of competitors
* rate of industry growth
* intermittent industry overcapacity
* exit barriers
* diversity of competitors
* informational complexity and asymmetry
* fixed cost allocation per value added
* level of advertising expense
* Economies of scale
* Sustainable competitive advantage through improvisation
The bargaining power of customers
Also described as the market of outputs...
displayed 300 characters
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