An Introduction to Porter's Five Forces Model
- Porter’s Five Forces identify the key pressures on an industry that impact the ability of a business to compete with rivals
- It helps managers think strategically about the environment in which the business operates
Diagram: Porter's Five Forces
Porter’s Five Forces model identifies the main competitive pressures on a business within an industry
- Porter argued that once a business fully understands these pressures in their context, they can take strategic decisions to achieve and sustain a competitive advantage
An Explanation of Porter's Five Forces Model
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1. Industry Rivalry |
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2. Threat of New Entry |
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3. Buyer Power |
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4. Supplier Power |
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5. Threat of Substitution |
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