Porters Five Forces Model

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Porter's Five Forces Model of competition (Porter, 1980), defines the competitive space of a business enterprise as being comprises of five forces --

  • new entrants -- with the threat of new entrants entry barriers
  • suppliers -- with the bargaining power of suppliers and factors of supplier power
  • substitutes -- the threat of substitutes
  • buyers -- with the bargaining power of buyers and their leverage and sensitivity to price
  • rivals -- addressing the intensity of rivalry from direct competitors