- What are the five competitive forces that compose the five forces model of competition?
The main objective of every organization is to survive and grow in the business. For a successful company, the initial stages of business set up is significant. The company has to first undertake a thorough industry analysis to understand the competitiveness in the industry. This give a clarity upon to what extent the industry is attractive, to what extent the industry has competition, what is the market share of the companies in the particular business and so on. The industry attractiveness and competitiveness study is one of the component of external environmental analysis by which we get to know the opportunities and threats for the company in the market.
To strategically analyse the status of a particular industry any company is planning to venture into, the famous model used is Porter's five forces model which has five major competitive forces in any industry the company is planning to venture into.
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