Analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry.
- 1) Threat of Substitute Products or Services
- (the power of the customers to purchase alternatives)
2) Supplier Power (the power of suppliers to drive up prices of materials)
3) Threat of New Entrants (the power of competitors to enter a market)
4) Buyer Power (the power of customers to drive down prices)
5) Rivalry among Existing Competitors (The power of competitors)