Porter's 5 Forces Analysis with example

Description
The five forces are:
Threat of New Entrants:
This force evaluates how easy or difficult it is for new competitors to enter the industry.
Factors such as barriers to entry, capital requirements, economies of scale, and government regulations play a role.
High barriers make it less attractive for new entrants, preserving the profitability of existing companies.
Bargaining Power of Suppliers:
This force assesses how much influence suppliers have over industry participants.
Suppliers with significant power can raise prices or reduce the quality of inputs, impacting the profitability of businesses.
Factors include the number of suppliers, uniqueness of their products, and the availability of substitutes.
Bargaining Power of Buyers:
This force examines the power of customers to negotiate for lower prices or better terms.
Buyers with strong bargaining power can drive down prices and reduce profit margins.
Factors include the number of buyers, the importance of each buyer to the business, and the availability of information.
Threat of Substitute Products or Services:
This force considers the potential for alternative products or services to meet the same customer needs.
The availability of substitutes can limit price increases and impact industry profitability.
Factors include the existence of close substitutes, their quality, and their prices.
Intensity of Competitive Rivalry:
This force analyzes the level of competition among existing firms in the industry.
High competition can lead to price wars, reduced profitability, and aggressive marketing efforts.
Factors include the number and diversity of competitors, industry growth, and exit barriers.