Elements and conditions in a company’s environment that allow it to formulate and implement strategies that enable it to become more profitable.

Elements in the external environment that could endanger the integrity and profitability of the company’s business.

A group of companies offering products or services that are close substitutes for each other.

Companies that are currently not competing in the industry but have the potential to do so.

Reductions in unit costs attributed to large output.

Preference of consumers for the products of established companies.

A cost advantage that is enjoyed by incumbents in an industry and that new entrants cannot expect to match.

Costs that consumers must bear to switch from the products offered by one established company to the products offered by a new entrant.

Costs that consumers must bear to switch from the products offered by one established company to the products offered by a new entrant.