Porter's Five Forces
Porter's Five Forces is a simple but powerful tool that you can use to identify the main sources of competition in your industry or sector.
When you understand the forces affecting your industry, you'll be able to adjust your strategy, boost your profitability, and stay ahead of the competition.
? For example, you could take fair advantage of a strong position or improve a weak one, and avoid taking wrong steps in the future.
What Are Porter's Five Forces?
According to Porter, there are five forces that represent the key sources of competitive pressure within an industry.
They are:
- Competitive Rivalry.
- Supplier Power.
- Buyer Power.
- Threat of Substitution.
- Threat of New Entry.