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1. What are the boundaries of the industry? Questions involved 2. What is the structure of the industry?
Helps executives determine arena in which their firm competes Focuses attention on firms competitors Helps executives determine key factors for success Gives executives another basis on which to evaluate their firms goals
How similar are the benefits the customers derive from the products and services other firms offer?
The more similar the benefits, the higher the level of substitutability between them
Industry Competitors
Buyers
Substitutes
Technological Ecological
THE FIRM