Five Forces Framework

The Five Forces Framework, developed by Michael Porter, analyzes the competitive environment of an industry. It examines: 1. **Threat of New Entrants**: How easily new competitors can enter the market. 2. **Bargaining Power of Suppliers**: The influence suppliers have on costs and quality. 3. **Bargaining Power of Buyers**: The impact customers have on pricing and demand. 4. **Threat of Substitute Products**: The likelihood of customers switching to alternative solutions. 5. **Industry Rivalry**: The intensity of competition among existing companies. Together, these forces help businesses understand their market position and strategize effectively.