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Porter's Five Forces

"Porter's five forces" is a framework for the industry analysis and business strategy development developed by Michael E. Porter of Harvard Business School. It identifies five forces that determine the competitive intensity and attractiveness of a market position.
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Porter's Five Forces

Supplier Power
The power of suppliers determines the extent to which they can assert their interests in a business relationship with the company.Byer Power
The power of byers determines the extent to which they can assert their interests in a business relationship with the company.Threat of new entry
New competitors entering into the market usually leads to increased price pressure.Threat of substitution
Substitute products are products that meet similar customer needs but are currently perceived differently by customers, appeal to other customer groups or are sold in other regions. Such substitute products have a negative impact on the attractiveness of an industry because customers could switch to these products if necessary.Competitive Rivalry
Competitive rivalry has an impact on the attractiveness of the industry. High levels of competition either lead to price competition or to performance competition. Both forms of competition have a negative impact on profit prospects and thus on market attractiveness.
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