Market Dynamics and Technical Change
Porter's Five Forces is a framework for analyzing the competitive forces within an industry to determine its attractiveness and profitability. It examines the intensity of competition in a market by looking at five key factors: the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services, and the rivalry among existing competitors. Understanding these forces helps businesses develop effective strategies for pricing, innovation, collaboration, and competitive advantage.
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