Porter's 5 Forces
Named after Michael E. Porter, this model identifies and analyzes 5 competitive forces that shape every industry, and helps determine an industry's weaknesses and strengths.
1. Competition in the industry
2. Potential of new entrants into industry
3. Power of suppliers
4. Power of customers
5. Threat of substitute products Investopedia Says:
Frequently used to identify an industry's structure in order to determine corporate strategy, Porter's model can be applied to any segment of the economy to search for profitability and attractiveness. Related Terms:
BCG Growth-Share Matrix
Loss Leader Strategy
Product Differentiation
Strategic Alliance
Stuffing the Channel
Switching Costs |