Five Forces (Porter's Five Forces)

Porter’s Five Forces is a framework for analyzing the competitive environment of an industry. It considers five factors: the threat of new competitors entering the market, the bargaining power of suppliers, the bargaining power of buyers or customers, the threat of substitute products or services, and the intensity of competitive rivalry among existing companies. Understanding these forces helps businesses identify their strengths, weaknesses, and areas where they can gain a competitive advantage or face risks. It's a strategic tool for making informed decisions about entering or operating within an industry.