ABSTRACT
This chapter focuses on the analysis of the competitive forces in an environment of a specific industry. The role of Internet in creating competitive advantage is explained, including its disadvantages. The three constructs of the strategic analysis are explored: Industry analysis, strategic group analysis and competition analysis from the perspective of the environment. Each construct is further divided and explained, stressing its role and long-term effects. The concept of five different forces is presented and its influence on profit is explained, discussing each different construct individually.
