Application of Porter’s Five Forces Analysis. Determiners of the intensity of competitive rivalry in an industry.
Organizations in any market have a sole purpose to satisfy the needs of customers. The group of buyers forms a market that must be sustainable; this means the industry must be profitable in the long run for the business competing in it to survive. Therefore, a business should find strategies to remain competitive and have a significate portion of market share.
Professor Porter developed a model for industry analysis that helps understand specific industry attractiveness. Porter’s framework consists of 5 competitive forces. Supplier power, buyer power, availability of substitutes, and new entrants. These forces act together to form what is termed as a market rivalry. The strategic analyses of these forces help in determining the attractiveness to a particular industry.
