Pressure on ProfitsFor this week’s discussion,Â the focus will be on examining Porter’s Five Forces as a tool for looking at the pressure on profits.Â Specifically,Â how does Porter’s analysis examine the stress on profits from all directions and all dimensions of a firm’s environment?Â Â You will be applying this tool by specifically looking at the market structure in which a firm completes.Â You will need to be ableÂ to distinguishÂ an oligopoly from a monopolistic competitive market structure. Instructions: pressure on profits. There are two groups of firms below.
- Group 1: firms in the retail sector (e.g. Amazon;Â Wal-Mart; Target; Kohl’s; Sears; Macy’s)
- Group 2: firms in the wireless services industry (e.g. Verizon; AT & T; Sprint/T-Mobile) (this about telecommunication services, not about the sale of phones)