Porter's model is a method designed to evaluate the pressures acting on the company from the market environment. It assesses the pressure, rivalry and interaction of competitors, suppliers, customers and substitutes. The result of their combined effect is finding profit potential.
Model assesses five basic forces:
- the risk of entry of potential competitors
- rivalry among existing competitors
- contractual power of buyers
- contractual power of suppliers
- threat of substitute products
For more information see the Methods section - Porter's model.