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English
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| Number of pages / Number of words: |
10 / 2592 |
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This model is to be used to show how a company can be competitive in their given market. The five forces, in layman’s terms, are as follows:
- The threat of substitute products
- The threat of the entry of new competitors
- The intensity of competitive rivalry
- The bargaining power of customers
- The bargaining power of suppliers
The Porter diagram attempts to determine the competitive intensity of a market by
examining how each of the Five Forces affects the company...
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The first Force, Threat of Substitution is affected by the ability of your customers to find a different way of doing what you do. If substitution is easy and substitution is viable, then this weakens your power. This affects Talbots, and possibly more than any other of the Five Forces. The fashion and clothing industry is a tough and extremely competitive market...
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General points of the essay
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