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According to Michael Porter, What Are the Five Competitive Forces

question 56

Essay

According to Michael Porter, what are the five competitive forces that create vital opportunities and threats for organizations? Which force do you feel is most important in the computer industry today? Why?


Definitions:

Invested Assets

Assets acquired for the purpose of generating income through investment, rather than for use in the operations of a business.

Profit Margin

A financial metric that measures the amount of net income earned with each dollar of sales generated, indicating the efficiency of a company in converting sales into profits.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing the benefits of an investment by its costs.

Income From Operations

Earnings generated from a company's regular, core business operations, excluding non-operational income and expenses.

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