2. Potential entry of new competitors
3. Potential development of substitute products
4. Bargaining power of suppliers
5. Bargaining power of consumers
The Five-forces model is used in three steps to determine what competition is like in a given industry :
1. Identify the specific competitive pressures/ key elements associated with each of the five forces, that impact the firm.
2. Evaluate how strong are the pressures comprising each of the five forces (Fierce, strong, moderate to normal or weak).
3. Determine whether the collective strength of the five competitive forces is conducive to earning attractive profits.
