GENERAL KNOWLEDGE

Detailed explanation-1: -The main driver is the number and capability of competitors in the market. If there are many competitors offering undifferentiated products and services, this will reduce market attractiveness.

Detailed explanation-2: -These forces include the number and power of a company’s competitive rivals, potential new market entrants, suppliers, customers, and substitute products that influence a company’s profitability. Five Forces analysis can be used to guide business strategy to increase competitive advantage.

Detailed explanation-3: -A competitor’s capabilities can be analyzed according to its strengths and weaknesses in various functional areas, as is done in a SWOT analysis. The competitor’s strengths define its capabilities. The analysis can be taken further to evaluate the competitor’s ability to increase its capabilities in certain areas.

Detailed explanation-4: -He identified five forces that make up the competitive environment that can eat into your profitability: buyer power, supplier power, competitive rivalry, the threat of substitution, the threat of new entrants.