Describe how an understanding of competitive forces and the intensity of competition might change the way a manager makes strategic decisions.

Even savvy venture capitalists fellinto this trap during the recent ill-fated Internetboom.One of the most difficult parts of strategicanalysis is the entrance of competition in the marketplace. Companies can start without any media performance and, before anybody knows it, they have a marketing challenge in front of them. The threat of new and unknown competition is what drives companies to remain visible in the marketplace and work to maintain a strong product offering. Obtaining logo trademarks and product patents can help to deter competition from entering the marketplace. If you own the patent on the product technology, then a start-up would need significant financial resources to develop and patent an alternative.