Examlex
Porter identified five fundamental competitive strategies.
Unrealized Intercompany Profits
Profits that result from transactions between companies within the same group, which are not realized until sold to an external party.
Direct Control
The ability to influence the management and policies of another entity through direct ownership or voting rights.
Indirect Control
The control over an entity achieved through another entity, such as controlling a subsidiary by owning a majority of shares in its parent company.
Equity Method
An accounting technique used by companies to record investments in other companies, where the investment is initially recorded at cost and adjusted for the investor's share of the investee's profit or loss.
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