PORTER FIVE FORCES MODEL

Strategic External Assessment DQ1 Wk 2

PORTER FIVE FORCES MODEL

The five forces model given by Michael Porter is a conceptual framework, in which he has described the internal and external forces that can affect the performance of a firm in a industry. It can help a company make an analysis of the internal and the external environment (Jones & Hill 2010, Pp.47). The five forces are:

Threat of new rivals: The threat of new companies entering the market, and therefore more competition. The more profitable a sector, the greater the threat of new competitors.

Threat of substitutes: There is ...