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The poorest companies have weak positions in weak industries.
Five Competitive Forces: Michael Porter's Five Forces have become a yardstick for assessing industry profitability. They are...
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* Buyers'/customers' power
* Suppliers' power
* Rivalry among competitors
* Threat of new entrants
* Threat of substitute products
The more powerful these forces in an industry, the lower its profit potential. The strength of each force differs by industry and changes over time. You'll find a summary of Porter's Five Forces model in our Resource Library...
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