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| Topic: |
Business
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| Number of pages / Number of words: |
6 / 1562 |
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The strength of each force is a separate function of the industry structure, which Porter defines as "the underlying economic and technical characteristics of an industry." Collectively, the five forces affect prices, necessary investment for competitiveness, market share, potential profits, profit margins, and industry volume...
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The key to the success of an industry, and thus the key to the model, is analyzing the changing dynamics and continuous flux between and within the five forces. Porter's model depends on the concept of power within the relationships of the five forces.
THE FIVE FORCES
INDUSTRY COMPETITORS.
Rivalries naturally develop between companies competing in the same market...
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