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Porter’s model of competitive forces

Porter’s model deals with competitive forces and rivalry on the market. Market rivalry depends on the influence and interaction among basic market forces (competition, the power of suppliers, the power of buyers, possibility of substitution). Outcome of this interaction determines the gain potential of the particular business field.

Analysis of competitive threats and pressures on the market

Today even smaller companies are able to knoc out much bigger firms which often boast of their renown. Everything depends on the distribution of power within a particular market segment, and, also, on how familiar they are to managers.

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Porter's model

Porter's model is a method designed to evaluate the pressures acting on the company from the market environment. It assesses the pressure, rivalry and interaction of competitors, suppliers, customers and substitutes. The result of their combined effect is finding profit potential.