Michael EPorter,a Leading Theorist of Competitive Strategy,developed a Five Forces Model

question 61

Essay

Michael E.Porter,a leading theorist of competitive strategy,developed a five forces model to explain competition in an industry.List these forces and describe the impact of the threat of new entrants.

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Definitions:

Defensive Industries

Industries with below-average sensitivity to the state of the economy.

Durable Goods

Consumer products that have a long life span (over three years) and are used over time, such as cars, appliances, and furniture.

Food Producers

Food Producers are companies or individuals engaged in the cultivation, preservation, and distribution of food products and commodities to consumers.

Defensive Industries

Sectors of the economy expected to remain stable during various phases of the business cycle, often including utilities and consumer staples.