INTRODUCTION
An industry is a group of firms whose products are close substitutes for each other (e.g. the car industry, the travel industry).
Some industries are more profitable than others. Why? The answer lies in understanding the dynamics of competitive structure in an industry.
The external environment of an organization is marked by intense competition between rival firms. The components of external environment include economic, socio-cultural, and global issues. In order to gain sustainable competitive advantage, the organization needs to study its external environment and exploit the opportunities prevailing therein.
The most influential analytical model for assessing the nature of competition in an industry is Michael Porter's Five Forces Model, which is described below:
Michael Porter described a concept that has become known as the "five forces model" to help understand how competition affects your business. Porter's 5 forces analysis is a framework for......
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