Page 38 - BrewDog Industry Analysis
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5-Forces Model
One of the most famous models developed for industry
analysis is that of Michael Porter. In his 1980 book
“Competitive Strategy, Techniques for Analyzing Industries and
Competitors” Porter developed his 5-Forces Model.
Porter identified five factors that act together to
determine the nature of competition within an industry.
These are the:
1. Degree of competitive rivalry
2. Threat of new entrants to a market
3. Bargaining power of suppliers
4. Bargaining power of customers (“buyers”)
5. Threat of substitute products
According to Porter, analysis of the five forces allows an
accurate sense of the industry and makes analysis easier.
