3min chapter

Curiosity Chronicle cover image

The Framework Handbook

Curiosity Chronicle

CHAPTER

The 10 Forces to Consider in a Competitive Market

Cornered Resources Preferential access at attractive terms to a coveted asset that can independently enhance value. Counter positioning A newcomer adopts a new superior business model, which the incumbent does not mimic due to anticipated damage to their existing business. Network economies The value of a service to each user increases as new users join the network. Scale economies Unit costs decline as production volumes increase. Switching costs The value loss expected by a customer that would be incurred from switching to an alternative supplier for additional purchases. Threat of substitution The difficulty level of substitution of the core products or services.

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