competitive forces
Definition
Forces that shape industries and economic sectors, which can be used to determine the competitive strength or weakness of a company. Some competitive forces include the threat of substitute products, the power of customers, the power of suppliers, the potential for new competitors, and the current number of competing firms in the industry.
Use competitive forces in a sentence
“ You should try to make sure that you know what all the competitive forces are doing and how they may effect you. ”
“ One of the toughest competitive forces in the consumer goods market is the introduction of low cost knock-off goods from countries like China, which threaten to undermine your business. ”
“ In the long run, competitive forces will drive the price of a good down until it reflects the cost to manufacture the good plus a premium commensurate with the risks undertaken by a manufacturer of the good. ”
