One of the biggest threats to a business – startup or established, small or Fortune 500 – is competition. Who is your competition? How are their actions in the marketplace going to affect your current bottom line and future planning?
To answer those questions, you must analyze the competition. One way to do that is by using Porter’s Five Forces model to break them down into five distinct categories, designed to reveal insights.
Originally developed by Harvard Business School’s Michael E. Porter in 1979, the five forces model looks at five specific factors that help determine whether or not a business can be profitable, based on other businesses in the industry.