Porter's five forces analysis

Porter's five forces analysis is a framework for the industry analysis and business strategy development developed by Michael E. Porter. It derives five forces which determine the competitive intensity and therefore attractiveness of a market. 

Strategy consultants occasionally use Porter's five forces framework when making a qualitative evaluation of a firm's strategic position.

Porter's five forces include:

three forces from 'horizontal' competition:

1. threat of substitute products,
2. the threat of established rivals,
3. and the threat of new entrants; and

two forces from 'vertical' competition:

1. the bargaining power of suppliers,
2. bargaining power of customers.