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The Five Competitive Forces That Shape Strategy & Industry Structure

Awareness of the five forces can help a company understand the structure of its industry and stake out a position that is more profitable and less vulnerable to attack. The five forces that shape competition are: the threat of new entrants, the bargaining power of buyers, the threat of substitute products or services, the bargaining power of suppliers, and the rivalry among existing competitors.

1Centre for Innovation and Sustainable Research (CISR), Bangladesh2University of Dhaka, Bangladesh3Stockholm School of Economics / CISR Advisory Board
calendar_todayPublished: 2008-04-15
menu_bookHarvard Business Review
Vol. 14, Issue 2, pp. 45–68

Structured Abstract

verifiedPeer-Reviewed

Awareness of the five forces can help a company understand the structure of its industry and stake out a position that is more profitable and less vulnerable to attack. The five forces that shape competition are: the threat of new entrants, the bargaining power of buyers, the threat of substitute products or services, the bargaining power of suppliers, and the rivalry among existing competitors.

Research Domain:Sustainability Transitions, Decarbonization & Quantitative Econometrics
JEL Classification:Q01, Q56, M14, O32, G32
Author Keywords
Strategic ManagementCompetitive AdvantageIndustry StructureMarket Economics
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