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:

Physical Commodity

Tangible goods that are traded, often used as inputs in the production of other goods or services, such as oil, gold, or wheat.

Precious Metal

A classification for metals that are considered rare and have a high economic value, such as gold, silver, and platinum.

Fiat Currencies

Currencies that have value primarily because of government regulation or law, rather than a physical commodity or asset backing them.

Electronic Currencies

Digital or online forms of currency that enable the execution of financial transactions via the internet, without the need for physical money.