Five Forces Framework
Five Forces Framework helps you analyze your market or industry by considering factors outside your direct influence like the bargaining power of buyers and suppliers, the threat of new entrants and substitute products into the market, and the level of rivalry among existing competitors.
What is Five Forces Framework?
Introduced by Michael Porter in 1979 in Harvard Business Review, Five Forces Framework gives a strategic framework for businesses to measures the attractiveness of an industry by studying the competitive forces at play within it.
Components of the Five Forces Framework
1. Threat of New Entrants
2. Threat of Substitutes
3. Bargaining Power of Buyers
4. Bargaining Power of Suppliers
5. Rivalry Among Existing Competitors
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FAQs on the Five Forces Framework
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Five Forces Framework was introduced by Michael Porter in 1979 in the Harvard Business Review.