The implication of Competition Analysis. Growth Industry

The implication of Competition Analysis
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Institution
Growth Industry
Under the growth industry, there is e-commerce, which has experienced the fastest growth in the recent past with the likes of e-Bay and Amazon reaping billions of profits. The sector boasts of many companies, but there are major ones that are known globally. The challenge with e-commerce is a barrier to entry because it requires a lot of capital and a useful website that can attract more traffic (Hill & Jones, 2013). The barriers to entry range from medium to high because the capital may either be medium with an average website or intensive with an efficient site. Interestingly, product differentiation is low because almost all the companies within the industry sell similar products, thus making the only differences to be the pricing and the way products are presented online. It is essential to note that in a growth industry, competition is high but coupled with a high level of opportunities because many peopl...