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Over 30 years ago Michael Porter identified a holistic approach to understanding how competitive forces shape strategy. He posited that the only way to truly insulate an organization from underlying economic volatility is by understanding the five competitive forces and how they relate, fundamentally, to the organization.
The five forces are:
Rivalry among existing competitors
The bargaining power of suppliers
Threat of new entrants to the market
The bargaining power of buyers
Threat of substitute products/services
Select one of the industries below and identify a specific company in that industry. For that company, identify the key drivers of competition for that industry and specifically for the selected company. Explain how those external competitive forces are affecting the industry and company and how those forces are shaping the overall strategic planning uniquely for that company and generally for that industry. Offer supporting rationale for your explanation and be sure to reference your statements using proper APA formatting. Respond to at least two of your classmates’ posts.
Industry:
Airline
Banking
Healthcare
Retail
Fast Food
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i among the most critical economic factors to monitor area.interest ratesb.economic growthc.foreign trade
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What impacts did these competencies have on your organization?
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