Pontificia Universidad Católica de Ecuador

Carrera de Negocios Internacionales

Strategic Planning
Mateo López 29/3/2023
Five Force Porter´s Model Summary
Porter's Five Forces model is a framework for analyzing the competitive forces within an
industry. The five forces are:
Threat of new entrants: This refers to the degree of ease or difficulty for new players to enter
an industry. The higher the barriers to entry, such as high capital requirements or regulation,
the lower the threat of new entrants.
Bargaining power of suppliers: This refers to the ability of suppliers to influence the price and
quality of inputs they provide to companies in the industry. The higher the bargaining power of
suppliers, the lower the profit potential for companies in the industry.
Bargaining power of buyers: This refers to the ability of customers to influence the price and
quality of products or services they buy from companies in the industry. The higher the
bargaining power of buyers, the lower the profit potential for companies in the industry.
Threat of substitutes: This refers to the degree of availability of substitute products or services
that could potentially replace those offered by companies in the industry. The higher the
availability of substitutes, the lower the profit potential for companies in the industry.
Rivalry among existing competitors: This refers to the intensity of competition among
companies in the industry. The higher the rivalry, the lower the profit potential for companies
in the industry.
Overall, the five forces help to identify the competitive intensity of an industry and the potential
profitability of companies operating within it.