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Stolb23 [73]
3 years ago
6

Porter’s five forces model is used to evaluate competition based on which 5 aspects?

Social Studies
1 answer:
belka [17]3 years ago
8 0

Immediate rivals, potential entrants, customers, suppliers and substitute products are the five aspects that are used to evaluate competition.

<u>Explanation</u>:

Porter's Five Forces is a framework or tool for analyzing the competitive environment of the company. The profit of the company is influenced by company's competitors, potential new market entrants, suppliers, customers and substitute products.

Michael Eugene Porter- a famous economist of America postulated Porter’s Five Forces. This tool helps in determining the competition intense of the company. The position of the company can be affected with the new entry of rivals in the same market. The company should be able to possess strong and durable barriers to withhold its position.

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