Porter's Five Force Model

Porter's Five Force Model

Introduction

As part of the analysis of the sector in which the company operates fits the model of the five competitive forces, also known as Porter's model of competition or enlarged. It explains the firm's position in a particular field. The objective of the model is to identify and analyze the forces that reduce the long-term viability of the company, so that you can fight. According to this model, there are five forces (hence the model name) that determine the structure of the industry and affect its profitability.

The stronger these forces, the lower the capacity of existing enterprises in the sector to raise prices and increase profitability. Following are the five ...