6 Forces
The Six Forces Model is a strategic framework used to analyse the competitive landscape of an industry. It was developed by Michael Porter and considers the following factors:
Rivalry among existing competitors: This refers to the intensity of competition between existing players in the industry.
Threat of new entrants: This refers to the potential for new competitors to enter the market and disrupt the existing competition.
Bargaining power of buyers: This refers to the ability of customers to influence prices and terms of sale.
Bargaining power of suppliers: This refers to the ability of suppliers to dictate terms and conditions to businesses.
Threat of substitute products: This refers to the availability of alternative products or services that can satisfy customer needs.
Complementors: These are businesses that offer products or services that enhance the value of a company's offerings.
By analysing these factors, businesses can gain a better understanding of their competitive environment and develop strategies to improve their competitive position.
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