Porter Five Forces Model

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Definition: Porter Five Forces Model

It is a strategy model proposed by Porter which provides a framework for assessing and analysing the competitive strength and position based on 5 parameters of an organization.

The Porter 5 forces are

  • Existing competitive rivalry between suppliers
  • Threat of new market entrants
  • Bargaining power of buyers
  • Bargaining Power of suppliers
  • Threat of substitute products (including technology change)

Example: -

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