Michael Porter's Five Forces

Michael Porter's Five Forces is a framework used to analyze the competitiveness of an industry. The five forces include: 1. **Threat of New Entrants**: How easy it is for new companies to enter the market. 2. **Bargaining Power of Suppliers**: The influence suppliers have on prices and availability of materials. 3. **Bargaining Power of Buyers**: How much customers can affect pricing and quality. 4. **Threat of Substitute Products**: The likelihood that customers will find different solutions. 5. **Industry Rivalry**: The intensity of competition among existing firms. Together, these forces help assess an industry's attractiveness and profitability.