Porter's Five Forces Model

Porter's Five Forces Model is a framework that helps analyze the competitive environment of an industry. It examines five key factors: the threat of new competitors entering the market, the bargaining power of suppliers, the bargaining power of customers, the threat of substitute products or services, and the intensity of rivalry among existing competitors. Understanding these forces allows businesses to identify their strengths, weaknesses, and opportunities for growth or risk management. Essentially, it provides a strategic view of how competitive or profitable an industry is, guiding companies in making informed decisions.