The External Environment

Industry Environment

Today I would like to tell about Industry Environment. The industry environment or we also have known as microenvironment. it is referred factors that directly affect the firm and its competitive responses.
the factors that include:
  • the threats of new entrants
  • the bargaining power of buyers
  • the bargaining power of suppliers
  • threats of substitutes products
  • rivalry among the existing firm

we will use Michael Porter's Five Forces Model to analyze the firm's industry environment.

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