Porter's Five Forces
Definition
Porter's Five Forces: Porter's Five Forces analyzes industry attractiveness through five competitive forces: rivalry among existing competitors, threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and threat of substitute products. It helps assess profitability potential and strategic positioning within an industry.
Example Usage
“Five Forces showed our market has high buyer power (commoditized features) but low new-entrant threat (high switching costs). We doubled down on stickiness.”
Common Misconceptions
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