The five forces of competitive pressures do not include the power and influence of social/demographic trends.
<h3>What are the Porter's five forces?</h3>
The Porters' 5 forces is used to analyse the competitiveness among firms in an industry.
Porter's 5 forces include :
Competition in the industry : the higher the number of companies in the industry, the lower the power an individual firm possesses. For example, if an industry increases it price, a consumer can easily shift to the consumption of substitute
Potential of new entrants into the industry : If there are low barriers to entry in an industry, firms in the industry experience greater competition
Power of suppliers : the higher the number of suppliers in the industry, the higher the bargaining power of firms in the industry and the greater the power they posses
Power of customers : the larger the number of customers, the greater the power firms possess
Threat of substitute product : if there are little or no substitutes for the goods produced by companies, the greater the power the firms possess
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