Conventional wisdom suggests that the changes currently sweeping Europe will bring about an increasingly competitive business environment. However, to date, this contention has not been subjected to any rigorous analysis. Uses the Porter model – the well‐known framework for diagnosing the competitive environment of industries – to analyse the changing competitive situation. Begins by reviewing the progress made since the adoption of the Single European Act. Reviews the dimensions of the Porter model for industry analysis and uses it to assess how competitive the new Europe will be. Conclusions are drawn. Outlines the strategic implications for companies both within and outside the EC.
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