3min chapter

Think Like An Economist cover image

S E45: Business Strategy - How to boost profitability

Think Like An Economist

CHAPTER

The Five Forces Framework

Businesses that essentially sell the exact same thing right next to each other. Each business is trying to capture as many customers as possible. Businesses try to erect barriers to entry to discourage potential competitors. Competitors in other markets can also be rivals with the potential to drive down profits.

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