The Five Forces: Competing for Profits The real point of competition is earning profits, not taking business away from your rivals. Business competition is about the struggle for profits, the tug-of-war over who gets to capture the value an industry creates. Companies compete for profits with their direct rivals, but also with their customers, their suppliers, potential new entrants, and substitutes. The collective strength of the five forces determines the average profitability of the industry through their impact on prices, costs, and the investment required to compete. A good strategy
...more
