DO THIS FOR MEijer

Your evaluation will include the I$/$O Model of Above Average returns and five forces model to isolate particular forces in the external environment that are potential threats. Porter identified these five factors that are major threats because they affect how much profit organizations competing within the same industry can expect to make. Write at least full one paragraph for each factor, explaining how it affects the company's chance of making a profit. Each paragraph requires at least one citation to show the source of your information.

The level of rivalry among organizations in an industry. The more that companies compete against one another for customers, by lowering the prices of their products or by increasing advertising$-$the lower is the level of industry profits $($low prices mean less profit$).(1$ paragraph$)$

The potential for entry into an industry. The easier it is for companies to enter an industry because, for example, barriers to entry, such as brand loyalty, are low the more likely it is for industry prices and therefore industry profits to be low. $(1$ paragraph$)$

The power of suppliers. If there are only a few suppliers of an important input, then suppliers can drive up the price of that input, and expensive inputs result in lower profits for the producer. $(1$ paragraph$)$

The power of customers. If only a few large customers are available to buy an industry$$s output, they can bargain to drive down the price of that output. As a result, producers make lower profits. $(1$ paragraph$)$

The threat of substitute products. Often, the output of one industry is a substitute for the output of another industry $($plastic may be a substitute for steel in some applications, for example; bottled water is a substitute for cola$).$ Companies that produce a product with a known substitute cannot demand high prices for their products, and this constraint keeps their profits low. $(1$ paragraph$)$