Michael E. Porter's Five Forces

Michael E. Porter’s Five Forces framework helps analyze the competitive environment of an industry. It considers: 1) the threat of new entrants who could challenge existing companies; 2) the bargaining power of suppliers who influence costs; 3) the bargaining power of buyers who can demand better prices; 4) the threat of substitute products that could replace current offerings; and 5) the intensity of rivalry among existing competitors. Understanding these forces helps businesses identify opportunities and threats, guiding strategic decisions to improve their competitive position.