Definition Of

Industry Environment

The general conditions for competition that influence all businesses that provide similar products and services.

Havard professor Michel E.Porter propelled the concept of industry environment into the foreground of strategic thought and business planning. The cornerstone of his work first appeared in the Havard Business Review, in which Porter explains the five forces that shape competition in an industry. His well-defined analytic frame-work helps strategic managers to link remote factors to their effects on a firms operating environment.

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