Porters 5 Forces Model
Porters 5 Forces Model
Porters 5 Forces Model
The Porter's 5 Forces Model is a strategic framework used to analyze the level
of competition within an industry. It examines the threats and opportunities
that can impact a business's profitability and competitive position.
by
Va
Vishal kumar Mahto
Threat of New Entrants
Industry Barriers
1
Existing players may have advantages like economies of scale, brand loyalty, or
intellectual property that make it difficult for new firms to enter the market.
Regulation
2
Government policies and industry regulations can create significant barriers to
entry, protecting incumbent businesses.
If buyers are very price- When there are a small Buyers that can integrate
sensitive, they have more number of large buyers, they upstream and produce the
leverage to demand lower can exert significant influence product themselves reduce
prices and better terms. over suppliers. the industry's bargaining
power.
Threat of Substitute Products
Product Differentiation Switching Costs
If a product is highly differentiated and If it's expensive or difficult for customers to
customers are loyal, substitute products are switch to a substitute, the threat is lower.
less of a threat.