Porter's Five Forces Analysis

Porter's Five Forces Analysis is a tool used to understand the competitive landscape of an industry. It examines five key factors: 1. **Competitive Rivalry**: How fierce is the competition among existing businesses? 2. **Threat of New Entrants**: How easy is it for new companies to enter the market? 3. **Bargaining Power of Suppliers**: How much influence do suppliers have on the prices and quality of products? 4. **Bargaining Power of Buyers**: How much influence do customers have in driving prices and quality? 5. **Threat of Substitutes**: How easily can customers switch to alternative products? This analysis helps identify strategic opportunities and risks in the market.