课程: Developing Business Acumen

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Assess the competitive environment

Assess the competitive environment

课程: Developing Business Acumen

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Assess the competitive environment

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- You should have a working knowledge of the competitive environment your company is competing in. A great tool for understanding in the competitive environment is a framework called Porter's Five Forces. It was created by Dr. Michael Porter to look at the dynamics in an industry and understand how are the competitors going to behave. You can learn more about Porter's Five Forces and how they can be used in strategic planning in my Strategic Planning Fundamentals course. Now, the five forces that you should understand are first, competitive rivalry, buyer power, supplier power, threat of new entrance, and threat of substitution. Competitive rivalry is all about how the competitors in your industry behave. How many are there? Are they rational or irrational? Do they collaborate or compete fiercely? Looking at buyer power, these are your customers. How much power do your customers have over you? If you only have one or two really big customers, there's a lot of buyer power there. If you…

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