Porter’s Five Forces

Porter's Five Forces

“The Five Forces” are Michael E. Porter’s framework for assessing the level of competitive intensity industry participants should expect to see. Highly competitive industries are likely to produce lower average profitability for participants in that market. Useful for rationalizing market entry or market exit decisions. E.g., competitors should seek out markets where the Five Forces are less severe, and exit markets with strong pressure from one or more of the Five Forces.

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