Introduction

Porter identified five competition forces that have an impact on every sector and every market. The characteristic of each of the five forces determines the intensity of the competition in one sector and therefore its profit potential and its attractiveness for potential entrants.

Therefore, your business strategy should seek to weaken the threat of these competition forces with regards to your company. Porter´s model serves as a tool for analysing the driving forces in the respective market sector. On the basis of this information you can decide about appropriate strategies for your business.