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Atharva Deshmukh
Daily Learnings... • 3m
Porter's Five Forces Analysis Porter's five forces framework is a method of analyzing the competitive environment of a business. The five forces are: 1] Competition: Intensity of rivalry among existing competitors, influencing pricing, profitability, and market share. E.g. Swiggy and Zomato competing for market share in the food delivery industry. 2] Threat of New Entrants: Risk of new players entering the market, increasing competition, and affecting profitability. E.g. Eatshare competes with established giants to gain market share in the delivery industry. 3] Supplier Bargaining Power: Power of suppliers to dictate prices or terms, impacting costs and margins. E.g. Intel increasing chip prices, which affects laptop manufacturers 4] Customer Bargaining Power: Influence of customers in driving prices down or demanding better quality/service. E.g.Mobile users switching between Airtel, Jio, or Vodafone for better plans and network coverage. 5] Substitutes: Availability of alternative products/services that can replace industry offerings, reducing demand. E.g. Users can choose between Ola, Uber, inDrive, and Rapido for their commuting needs.
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