that this model was devised by Michael Porter to describe forces that shape competition within an industry and help to identify strategic opportunities and threats. The stronger each of these forces is, the more established companies are limited in their ability to raise prices and gain greater profits. A strong competitive force is a threat because it depresses profits. A weak competitive force is an opportunity because it allows the company to earn greater returns. For each force, state the level of the threat (High, Moderate, or Low) and justify your answer. Use the facts provided and the rest you can make up using your imagination.

Understanding Business
12th Edition
ISBN:9781259929434
Author:William Nickels
Publisher:William Nickels
Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment
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that this model was devised by Michael Porter to describe forces that shape competition within an industry and help to identify strategic opportunities and threats. The stronger each of these forces is, the more established companies are limited in their ability to raise prices and gain greater profits. A strong competitive force is a threat because it depresses profits. A weak competitive force is an opportunity because it allows the company to earn greater returns. For each force, state the level of the threat (High, Moderate, or Low) and justify your answer. Use the facts provided and the rest you can make up using your imagination.
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