providing analytical tools, however, and identified strategies that result from these forces. The three strategies are lower cost, differentiation, and focus. Within focus, firms can have a cost focus, a differentiation focus, or a cost and differentiation focus. According to Porter, firms that follow one of these generic strategies within the context of the forces that are operating within the industry will have consistently strong performance (Orges & Stringa 2008).
The threat of entry force is concerned with how easily new competitors can enter a particular market. In the aircraft industry, where Boeing and Airbus compete, for example, entry is made difficult because of capital requirements and access to distribution channels. In addition, companies that already compete in the market have gained significant economies of scale, have gained strong brand identity, and have learned how to operate within government regulations across multiple markets. Such regulatory compliance may represent a significant barrier to entry in today's global market. From a strategic marketing perspective, threat of entry helps a company identify how long it will be able to operate in an industry without significant competition. This can determine whether a market opportunity is attractive or not in that it can help determine the amount of time required for the company to earn back its initial investment or how long the company will have to establish a strong brand image (Fodness 2005).
The availability of substitute products is also a key force in the competitive environment. When substitute products are readily available, no one company has a strong advantage over ano
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