6 Forces

The Six Forces Model is a strategic framework used to analyse the competitive landscape of an industry. By analysing these factors, businesses can gain a better understanding of their competitive environment and develop strategies to improve their competitive position. It was developed by Michael Porter and considers the following factors:

1. Rivalry among existing competitors This refers to the intensity of competition between existing players in the industry.

2. Threat of new entrants This refers to the potential for new competitors to enter the market and disrupt the existing competition.

3. Bargaining power of buyers This refers to the ability of customers to influence prices and terms of sale.

4. Bargaining power of suppliers This refers to the ability of suppliers to dictate terms and conditions to businesses.

5. Threat of substitute products This refers to the availability of alternative products or services that can satisfy customer needs.

6. Complementors These are businesses that offer products or services that enhance the value of a company's offerings.

Further Reading

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