What is the Porter’s five forces model?

The Porter’s five forces model is a framework established by Michael E. Porter to evaluate the competitive forces that shape an industry. It scrutinises five elements: the bargaining power of buyers, the bargaining power of suppliers, the threat posed by new entrants, the potential of substitute products or services, and the intensity of competitive rivalry.

This model assists businesses in understanding the dynamics of their industry and formulating strategies to enhance their market position and profitability.

Porter’s five forces model is one of several business analysis techniques that business analysts apply in their roles.