What is Porters five factor model?

Porter's Five Forces Model is a framework for analyzing the competitive forces within an industry that influence its profitability and attractiveness. The five forces include: the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services, and the intensity of competitive rivalry. By assessing these forces, companies can identify their competitive environment and strategic positioning. The model helps businesses understand the dynamics at play and make informed strategic decisions.