Mainly used to analyze the competitive landscape of enterprises in this industry and the relationship between other industries

Analyze the basic competitive situation of an industry from a large number of different factors brought together in a simple model

The five major competitive forces determine the profitability of the industry and point out the core of corporate strategy

The application lies in choosing the right industry and the most attractive competitive position within the industry

who are suppliers

It represents the extent to which suppliers can influence prices

Sellers can easily switch to competition and suppliers cannot influence or control industry prices

less, suppliers can push prices higher

Possibility of integrating prospects for higher profits and profit margins

who are customers

high

Low

Is it difficult to enter this industry?

Disaster

easy

elements

What are substitute goods

When consumers can choose among many substitute goods or services, the buyer determines the price, thereby reducing the bargaining power of the firm

Prevent the creation of substitutes

Who are the main competitors in this industry?

When an industry competes monopolistically, firms have complete control over the prices of goods and services

Possibility of emergence of competitors

The five forces model is a process that puts the entire industry into a static process, and changes in the industry cannot be static.

The relationship between the five factors was not considered, nor was the dynamic relationship between the five forces expressed.

There is not only competition between enterprises, but also cooperation between enterprises.

Is the competitive state of the industry stronger than “normal”?

Regarding competitiveness, do companies in this industry expect to earn substantial profits?

Is competitiveness strong enough to undermine industry profitability?

powerful

medium

weak