Porter Five-Force Model
Porter's five forces model is one that is common in theory but also in practice when it comes to mapping competitive (forces). If you have the five forces of Porter's model sharp, you then know how attractive your market is, what the balance of power is in your branch.
The five forces are as follows:
1. Threat of new entrants: How likely are new players to enter the market and what would be their impact?
2. Internal competition in the current market: What are the relationships in the market as it is today?
3. Power of buyers: How strong are the buyers and how dependent is your company on these buyers?
4. Power of suppliers: How strong are the suppliers and do you have power over them or they over you?
5. Threat of substitutes: How likely is it that substitutes will enter the market and what would be the impact?
