This template is a detailed visual representation of Porter's Five Forces Analysis, which is a strategic tool used to determine the competitive intensity and attractiveness of a market. The diagram uses a concentric circle format to display the five forces: Rivalry (at the core), New Entrants, Substitutes, Supplier Power, and Buyer Power (at the outermost layer). An accompanying text block explains that the analysis helps a business determine the determinants of the place you are operating and allows for sound decisions for an enterprise or company. The goal of the tool is to maximize profitability by providing a clear understanding of the competitive environment, looking beyond the immediate rivalry to assess major factors like the threat of substitution and the threat of new entry. The overall aim is to use these factors to arrive at a proper strategy and assess long-term goals.
