This template illustrates Porter's Five Forces Analysis, a strategic tool used to gauge the competitiveness and profitability of a business within its industry environment. The analysis helps businesses make sound decisions by providing a clearer picture of the environment, looking beyond the behavior and activities of direct competitors. The five major factors identified in the diagram as influencing industry competition and profitability are: the Threat of Substitutes, Buyer Power, Rivalry among existing competitors, Supplier Power, and the Threat of New Entrants (New Entrants). By naming and assessing these forces, a company can arrive at a proper strategy, maximize profitability, and set appropriate long-term goals for the enterprise.
