BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Five forces analysis helps organisations to understand the factors affecting profitability in a specific industry, and can help to inform decisions relating to: whether to enter a specific industry; whether to increase capacity in a specific industry; and developing competitive strategies.

Detailed explanation-2: -The model is more commonly referred to as the Porter’s Five Forces Model, which includes the following five forces: intensity of rivalry, threat of potential new entrants, bargaining power of buyers, bargaining power of suppliers, and threat of substitute goods and/or services.

Detailed explanation-3: -These forces include the number and power of a company’s competitive rivals, potential new market entrants, suppliers, customers, and substitute products that influence a company’s profitability. Five Forces analysis can be used to guide business strategy to increase competitive advantage.

Detailed explanation-4: -Customers, suppliers, substitutes and potential entrants-collectively referred to as an extended rivalry-are competitors to companies within an industry. The five competitive forces jointly determine the strength of industry competition and profitability.