If Structural Change Within an Industry Happens to Be Very

question 33

Essay

If structural change within an industry happens to be very rapid, then Porter's five forces model of competition has limited predictability. How can fast-pace industry firms -such as technology-driven or e-commerce firms-predict their competition?

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Definitions:

Depreciation Expense

An accounting method that allocates the cost of a tangible asset over its useful life, reflecting how much of the asset's value has been used up over a period.

Estimated Useful Life

The expected period over which an asset is anticipated to be usable by a company.

Obsolescence

The process of an asset, product, or technology becoming outdated or no longer used, often due to advancements in technology or changes in consumer preferences.

Useful Life

The estimated duration that an asset is expected to be functional and economically feasible for use in operations, affecting depreciation calculations.