Step 1: Understand Michael Porter's business strategy framework.
Step 1: Michael Porter, a Harvard Business School professor, created a framework to assess industry competitiveness, focusing on its appeal and financial success.
Step 2: Identify Porter's Five Forces.
Step 2: "Porter's Five Forces" framework includes:
Threat of New Entrants: Ease of market entry for new competitors.
Bargaining Power of Buyers: Customer influence on price reductions.
Bargaining Power of Suppliers: Supplier influence on input costs.
Threat of Substitute Products or Services: Probability of customers choosing alternatives.
Rivalry Among Existing Competitors: Competition intensity among current market players.
Step 3: Note the number of forces.
Step 3: The model, as indicated by its name, comprises five forces.