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Porter's Five Forces

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Michael PorterHow Competitive Forces Shape Strategy, HBR 1979

Industry profitability is determined by five forces: rivalry among competitors, threat of entrants, threat of substitutes, and the bargaining power of buyers and suppliers.

Joan MagrettaUnderstanding Michael Porter, 2011

The five forces explain the industry's average prices and costs — strategy is positioning the firm where the forces are weakest or shaping them in your favour.

The EclipseFrontiers® LensStudy the forces before you fight them — then choose a different battlefield.
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