PORTER'S FIVE FORCES FRAMEWORK
PORTER’S
FIVE FORCES FRAMEWORK
The five forces framework
developed by Michael Porter is the most widely known tool for analyzing the
competitive environment, which helps in explaining how forces in the
competitive environment shape strategies and affect performance. The framework
as shown in Figure-I suggests that there
are competitive forces other than direct rivals which shape up the competitive
environment. These competitive forces are as follows:
1)
The rivalry among competitors in the industry
2)
The potential entrants
3)
The substitute products
4)
The bargaining power of suppliers
5)
The bargaining power of buyers
Figure I : Five Forces Analysis
Five Forces Analysis
