ENTRANT
PORTER'S POWER OF SUPPLIERS
FIVE FORCES POWER OF BUYERS
ANALYSIS AVAILABILITY OF
SUBSTITUTES
COMPETITION IN THE
INDUSTRY
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, DEFINITION
Porter's Five Forces is a model for analyzing the competitiveness of an industry and its
profitability.
PORTER'S THE FIVE FORCES
1. Competitive rivalry
FIVE
- Intensity of competition among firms
2. Threat of new entrants
- Ease/Difficulty of new firms joining
FORCES 3. Bargaining power of suppliers
- Influence of suppliers on prices
ANALYSIS
4. Bargaining power of buyers
- Power customers have
5. Threat of substitutes
- Risk of alternative products/services replacing a product/service
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