Introduction

to
Industry Analysis

Porters Five Forces

Threats of new competition
Threats of substitute products
Bargaining power of customers
Bargaining power of suppliers
Strength of competition

Threats of new competition

Refers to the threat of other firms entering the same
market

Threats of substitute products

Refers to the threat of customers shifting to a
similar product

Bargaining power of customers

Refers to the power of customers to influence the
pricing of products

Bargaining power of suppliers

Refers to the power of suppliers to influence the
pricing of products

Strength of competition
Refers to the competitive pricing between different
firms in the same market