Porter’s Five Forces Analysis – A Detailed Study

Five pointed star with shadow, red color


Porter’s Five Force Analysis is a framework that can be used to analyze the level of competition within the industry. It can also be used in business strategy development and draws upon the organizational economics of the industry. The competitive intensity as well as the attractiveness of industry which refers to the profitability of whole industry is determined using Porter’s Five Force Analysis. This article will explore the analysis in details.


What is Porter’s Five Forces Analysis?

Porter’s Five Force Analysis is a very powerful tool that is used for understanding where does power lie in an industry. This is very beneficial as it helps businesses understand the strength of their competitors and the position they are moving into. One can take advantage of the situation and avoid taking wrong steps by enhancing the weak situation. In short, this tool has the capability to identify if the new products and services have enough potential to get profits.

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