Porter's Five Forces Model

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Michael Porter’s Five Forces framework was developed in 1979 as a simple, yet powerful and forward-looking tool for understanding the competitiveness of any business environment. Porter was quick to recognize that most organizations keep a close watch on their rivals, but he also encouraged them to look beyond the actions of their competitors. So, he identified five forces that make up the competitive environment:
1. Rivalry among existing competitors
2. Threat of new entrants
3. Threat of substitutes
4. Power of buyers, and
5. Power of suppliers

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