Free Colorful Pastel Porter's Five Forces Chart
This image presents a business framework known as Porter's Five Forces Analysis, which is a strategic tool designed to gauge the competitiveness and attractiveness of a market or industry. The accompanying text explains that utilizing this analysis helps a business become more observant of its operating environment, enabling it to make sound decisions for the enterprise. The primary objective of the tool is to maximize profitability by providing a clear and comprehensive picture of the environment, moving beyond just observing the behavior of competing companies. The visual component illustrates the five major factors that determine the intensity of competition: Competitive Rivalry, Supplier Power, Buyer Power, Threat of Substitution (Substitutes), and Threat of New Entry (New Entrants). By naming and assessing these forces, the analysis assists businesses in arriving at a proper strategy and establishing achievable long-term goals.
