Competitive Forces

Competitive forces refer to the various factors that shape the level of competition within an industry. These include existing competitors vying for market share, the threat of new entrants who might challenge established companies, the bargaining power of suppliers who influence costs, the bargaining power of customers who can demand better prices or quality, and the threat of substitute products that could replace current offerings. Together, these forces determine how challenging it is for businesses to succeed and profit within a market, guiding strategic decisions and industry dynamics.