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  1. Threat of New Entrants: How easy or hard it is for new companies to enter the market and increase competition. High barriers = low threat.

  2. Bargaining Power of Suppliers: How much power suppliers have to influence prices. Fewer suppliers = higher power.

  3. Bargaining Power of Buyers: How much power customers have to demand lower prices or better quality. More options for buyers = higher power.

  4. Threat of Substitutes: The likelihood of customers switching to alternatives. More substitutes = higher threat.

  5. Industry Rivalry: The intensity of competition among existing companies. More competitors = higher rivalry.

The Five Forces framework helps businesses analyze the competitiveness of their industry and craft strategies to improve their position.

                                                                                                                                               

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