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Porter's Five Forces

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Bargaining Power of Suppliers

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This force analyzes how much power a business’s suppliers have over the potential to raise prices or reduce the quality of purchased goods or services, which, in turn, would lower profitability for the business.

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Bargaining Power of Buyers

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This force examines the pressure customers can place on businesses by demanding lower prices, higher quality, or additional services, which can impact profitability and competitive intensity.

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Threat of New Entrants

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This force relates to the ease with which new competitors can enter the market. High barriers to entry often discourage new companies, thus reducing competitive pressure and the threat of new entrants.

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Threat of Substitute Products or Services

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This assesses the likelihood of customers finding a different way of doing what your business does, which can reduce demand for your products and services, potentially affecting market position and profits.

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Intensity of Rivalry among Competitors

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This force considers how intense the competition currently is in the marketplace, which affects pricing, marketing, and strategy, and can be determined by the number and capabilities of competitors.

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