The Five forces model

The five forces model enables the analysis of industry sectors in order to identify opportunities or threats – the five forces model consists of

  • Risk of new competitors/sellers
  • Increased competition and rivalry amoungs existing marketplace
  • Bargaining power of suppliers
  • Bargaining power of buyers
  • Threat of new products

When analyzing the results the stronger each force is the lower the ability for businesses to raise prices.  Further information on the model can be found here : http://en.wikipedia.org/wiki/Porter_5_forces_analysis

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