What is the Competitive Environment


Further elaborating on Porter’s Five Forces, I’ll define each of the forces in a separate post. Below I’ll define the Competitive Environment.


The definition is simply how competitive the industry is. This force is determined by things such as the number of competitors, the costs of doing business, industry growth, etc. If there are many competitors then it is very competitive and not competitive if there are very few competitors. Increasing the number of competitors increases the Bargaining Power of Buyers. The costs of doing business serve as a Barrier to Entry. The higher the costs, the fewer the competitors. If there is a lot of industry growth then each company does not have to take market share from others in order to make a profit for the market is expanding. If the industry is flat and stagnant then each company has to take market share in order to make a profit. It is thus far more competitive.

Fee Structure

Rate Assets Under Management
1.44% Below $125,000
1.00% Between $125,000 and $750,000
.85% Between $750,000 and $1,250,000
.80% Between $1,250,000 and $1,750,000
.75% Between $1,750,000 and $2,500,000
.70% Between $2,500,000 and $3,250,000
.65% Between $3,250,000 and $4,250,000
.60% Above $4,250,000

A single rate is applied to the entire account. So a person with a $750,000.01 account pays less than a person with a $750,000 account. I will waive personal tax return fees for accounts over $1 million. For accounts that are above $5,250,000, we’ll need to discuss a custom rate. 

As I’m writing these to help my readers, I would be very appreciative of any input in regards to what I should write next. If you want me to write about a particular topic, please contact me. Please contact me if you would like to submit a post to my blog.

If anything that I mentioned above interests you, please consider downloading my free e-book. The book contains my thoughts on investment management and some information that I think everyone should know. You can also download it below.

E-Book Download

Questions for the comments

Did my explanation make sense? Do you agree or disagree with what I said?

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