Porter's Five Forces model is used to analyze the competitiveness within an industry and the profitability of a firm's strategy. The five forces include: rivalry among existing competitors, potential entry of new competitors, power of suppliers, power of consumers, and threat of substitute products. High rivalry exists when there are many competitors of similar size offering similar products. Barriers to entry include economies of scale, capital requirements, and customer loyalty. Supplier power is high when there are few suppliers and switching costs are high. Consumer power is high for standardized products.
2. Porter's Five Forces is a simple but
powerful tool for understanding the
competitiveness of your business
environment, and for identifying your
strategy's potential profitability.
https://www.mindtools.com/pages/article/newTMC_08.htm
3. Michael E. Porter (1979)
to analyze an industry's
attractiveness and likely
profitability