What are the five factors that influence competition?
What are compcompetitive factors?
- Competitive factors are external realities that influence strategy. These can be identified for a business or any other competitive situation.
Why is it important to assess the intensity of competition?
- It is important to be aware of these factors influencing intensity of competition, as it may influence the decision of entering a market or staying away of it. Assessing the intensity of competition in an industry is the most important step in the 5 Forces of Porter Model Analysis. This model analyses the competitive structure in an industry.
What is compete within an industry?
- Competition within an industry is grounded in its underlying economic structure. It goes beyond the behaviour of current competitors. The state of competition in an industry depends upon five basic competitive forces. The collective strength of these forces determines profit potential in the industry. Profit potential is measured.
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