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Chapter 11 Dealing with Competition

Competitive Forces
- Michael Porter has identified five forces that determine the intrinsic long-run attractiveness of a market segment

A. Threat of intense segment rivalry
- a segment is unattractive if it already contains numerous, strong, or aggressive competitors - frequent price wars, advertising battles, new-product introdu...

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11 12 advanc advertis aggress airlin alreadi attract b bargain barrier battl becom buyer c case cellular chapter chronic competit competitor concentr contain cost d deal depress determin downstream e earn entrant entri er exampl exit face fall fight firm five forc fraction frequent grow height high identifi import increas industri input integr intens intrins introduct like limit long long-run low market michael new new-product numer overcapac perform phone place poorer poorer-perform porter potenti power price product profit repres return risk rivalri run segment sensit signific stabl strong substitut suppli supplier switch technolog tend threat unattract undifferenti upstream vari war worst