IDEAS home Printed from https://ideas.repec.org/a/cbu/jrnlec/y2024v4p142-146.html
   My bibliography  Save this article

Porter'S 5 Competitive Forces

Author

Listed:
  • ECOBICI MIHAELA LOREDANA

    (CONSTANTIN BRANCUSI UNIVERSITY OF TARGU-JIU)

Abstract

The attractiveness of an economic branch refers to its potential to generate profits and attract investment, this being analyzed considering the following factors: economic structure, market conditions, competition and last but not least government regulations and policies. The purpose of the article is to highlight some aspects related to the main competitive forces of an economic branch, respectively: the entry of new competitors, the threat of substitute products, the bargaining power of buyers, the bargaining power of suppliers and the rivalry between existing competitors. Cooperation, as well as the manner of action of companies in the competitive environment, influence the behavior and results of the activities in the competitive sphere. The five competitive forces form Porter's model, which is a strategic analysis tool that helps assess the competitiveness of an industry. A well-founded analysis of these forces helps to understand the dynamics of the market in which the company operates and leads it to adopt effective strategies to obtain a competitive advantage. The collective intensity of these five competitive forces determines the ability of firms in an industry to achieve, on average, rates of return on investment above the cost of capital. The five forces determine the profitability of the branch because they influence, within it, the prices, the costs and the investment that the firms have to make - i.e. The elements of return on investment.

Suggested Citation

  • Ecobici Mihaela Loredana, 2024. "Porter'S 5 Competitive Forces," Annals - Economy Series, Constantin Brancusi University, Faculty of Economics, vol. 4, pages 142-146, August.
  • Handle: RePEc:cbu:jrnlec:y:2024:v:4:p:142-146
    as

    Download full text from publisher

    File URL: https://www.utgjiu.ro/revista/ec/pdf/2024-04/14_Ecobici.pdf
    Download Restriction: no
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cbu:jrnlec:y:2024:v:4:p:142-146. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ecobici Nicolae The email address of this maintainer does not seem to be valid anymore. Please ask Ecobici Nicolae to update the entry or send us the correct address (email available below). General contact details of provider: https://edirc.repec.org/data/fetgjro.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.