Porter’s Five Forces

This is an analysis approach developed by Michael E Porter to identify whether new products, services or businesses have the potential to be profitable.

The five forces which affect the attractiveness of an industry or product set are: threat of new entrants, threat of substitutes, bargaining power of buyers, bargaining power of suppliers and the competitiveness of the industry (for example the levels of advertising, innovation, technological change).

Porter's 5 Fiver Forces Model

Porter’s five forces is a term normally found in strategic management and performance management.

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