MGT 3111 Chapter Notes - Chapter 5: Market Power, Switching Barriers, Competitor Analysis
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Is a fra(cid:373)e(cid:449)ork e(cid:374)trepre(cid:374)eurs use to u(cid:374)dersta(cid:374)d a(cid:374) i(cid:374)dustry"s stru(cid:272)ture: developed by professor michael porter, comprised of the forces that determine industry profitability, each of the five forces affects the average rate of return for the firms. The five forces: threat of substitutes, threat of new entrants, rivalry among existing firms, bargaining power of suppliers, bargaining power of buyers. Industries are more attractive when the threat of substitutes is low means products or services fro(cid:373) other i(cid:374)dustries (cid:272)a(cid:374)"t easily ser(cid:448)e as su(cid:271)stitutes for the produ(cid:272)ts or ser(cid:448)i(cid:272)es (cid:271)ei(cid:374)g (cid:373)ade a(cid:374)d sold i(cid:374) the lo(cid:272)al fir(cid:373)"s i(cid:374)dustry. Industry analysis business research that focuses on the potential of an industry. Industry a group of firms producing a similar product or service, such as music, pilates and yoga studios, and solar panel manufacturing. Competitor analysis a detailed e(cid:448)aluatio(cid:374) of a fir(cid:373)"s (cid:272)o(cid:373)petitors. Position determines how the company is situated relative to its competitors.
