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This type consists of the five competitive forces: the threat of new entrants, threat of substitute products or services, the bargaining power of suppliers, bargaining power of buyers, and rivalry among existing competitors. The intensity of the five forces determines the long-term profitability of the sector concerned. The five competitive forces up the prices companies can charge, the costs and have to bear the investment needed to compete in the sector. The intensity of each of the five forces is a function of the industry structure or the basic technical and economic characteristics of a sector...
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