The Porter

The Porter model, developed by Michael Porter, is a framework for analyzing a company's competitive environment. It identifies five forces that affect profitability: the threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products, and industry rivalry. By understanding these forces, businesses can develop strategies to enhance their competitive position, such as improving cost efficiency, differentiating their products, or entering new markets. This model helps companies anticipate challenges and identify opportunities within their industry landscape, ultimately guiding informed decision-making to achieve long-term success.