THE RULES OF COMPETITION
Value to customer constitutes ceiling on value available to chain.
Bargaining power determines allocation of value in chain.
Value added by industry limits value “industry” can capture.
Intensity of competition within industry determines actual capture of value by industry.
Ability of firm to create value determines its share of industry value captured.
Existence of substitute products limits price industry can charge.
Potential entrants exist to reduce supra-normal profits.