... entrants into the market, there are also the forces of supplier power, the power of the buyers, and the threat of substitute products or services. Porter suggested that the intensity of competition is determined by the relative strengths of these forces. Main Aspects of Porter's Five Forces Analysis The original competitive forces model, as proposed by Porter, identified five forces which would impact on an organization's behaviour in a competitive market. These include the following: • The rivalry between existing sellers in the market. • The power exerted by the customers in the market. • The impact of the suppliers on the sellers. • The potential threat of new sellers entering the market. • The threat of substitute products becoming available in the market. Understanding the nature of each of these forces gives organizations the necessary insights to enable them to formulate the appropriate strategies to be successful in their market ...

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