ABSTRACT
Michael Porter developed the five-force model as a way of evaluating the attractiveness of an industry. Which includes: Threat of new entrants relates to the competitive pressures placed by new entrants to a market and the degree to which can be prevented by barriers to entry. Bargaining power of suppliers – Where demand exceeds supply, the supply base will have greater bargaining power over buyers, particularly if there are no alternative sources of supply. Bargaining power of customers – Where supply exceeds demand from customers, or the demand is heavily consolidated, additional pressures will be placed upon the market. Threat of substitutes – Alternative products and services increase competitive pressures on a market simply because they reduce the customers' dependency and give them more opportunity to switch to alternatives. And rivalry within the market – Competition within the market will depend on how saturated or dynamic the market is.
