Glossary

10 PORTER´S FIVE FORCES terms

THIS GLOSSARY WILL SERVE EXCLUSIVELY TO BE ABLE TO EXPLAIN WORDS THAT WE DO NOT UNDERSTAND IN AN EXPLANATORY WAY AND HAVE A RESOLUTION OF THEM

average industry

The Dow Jones Industrial Average (DJIA) is a widely-watched benchmark index in the U.S. for blue-chip stocks. The DJIA is a price-weighted index that tracks 30 large, publicly-owned companies trading on the New York Stock Exchange (NYSE) and the Nasdaq.

es: INDUSTRIA PROMEDIO

buyer power

QUALY

Buyers have the power to influence price and the quantity of products sold. Powerful buyers can bargain on volume or switching costs or they can find substitute products. Price sensitivity also impacts the buyer/seller relationship

Example: PROFIT INCREASE

es: PODER DE COMPRA

cost of capital

ADJECTIVE

The cost of capital is the minimum return that an investment must offer to make it worthwhile from the point of view of the current owners of a company. The cost of capital is one of the elements that determine the value of the company.

es: COSTO DE CAPITAL

DISSIPATED

OVERINGDULGING IN SENSUAL PLEASURES

es: GLOSARIO

efficient competitor

ADJECTIVE

Effective competition is a concept first proposed by John Maurice Clark, later under the name "viable competition", as a "viable" alternative to the economic theory of perfect competition, since perfect competition is rarely observed in The real world.

es: COMPETIDOR EFICIENTE

head-to-head

involving two parties confronting each other.

es: CABEZA A CABEZA

industry

economic activity concerned with the processing of raw materials and manufacture of goods in factories.

es: INDUSTRIA

new entrants

New entrants are businesses that want to enter your market. Your power is affected by the ability of others to enter the market. New competitors can easily enter your market when there are low entry costs, few economies of scale, no knowledge-intensity and little protection of key technologies.

es: NUEVAS ENTRADAS

risk of failure

ADJECTIVE

The possibility of incurring misfortune or loss; hazard. 2 (Insurance) a chance of a loss or other event on which a claim may be filed.

es: RIESGO DE FRACASO

through

moving in one side and out of the other side of (an opening, channel, or location)

es: MEDIANTE