Porter's Five Forces is a strategic analysis tool developed by Michael E. Porter to assess the competitive landscape of an industry and understand its attractiveness. The five forces include Competitive Rivalry, Threat of New Entrants, Threat of Substitute Products, Bargaining Power of Suppliers, and Bargaining Power of Customers. This framework helps businesses evaluate the intensity of competition and profitability within their industry. By analyzing these forces, companies can develop strategies to enhance their market position, capitalize on strengths, and mitigate risks associated with each force. Porter's Five Forces is crucial for strategic planning and decision-making.
