porters five forces

Essay specific features

 

Issue:

Business

 

Written by:

Christine B

 

Date added:

August 27, 2011

 

Level:

University

 

Grade:

A

 

No of pages / words:

2 / 434

 

Was viewed:

2093 times

 

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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...
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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...
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