Five Forces Analysis

Five Forces Analysis is a tool that helps understand the competitiveness of an industry. It examines five key factors: the threat of new competitors entering the market, the bargaining power of suppliers, the bargaining power of customers, the threat of substitute products or services, and the intensity of rivalry among existing competitors. By analyzing these forces, businesses can identify strengths and vulnerabilities, anticipate market changes, and develop strategies to improve their market position. It's a way to assess how attractive or challenging an industry is for companies operating within it.