.It works by looking at the strength of five important forces that affect competition:
• Supplier Power: The power of suppliers to drive up the prices of your inputs.
• Buyer Power: The power of your customers to drive down your prices.
• Competitive Rivalry: The strength of competition in the industry.
• The Threat of Substitution: The extent to which different products and services can be used in place of your own.
• The Threat of New Entry: The ease with which new competitors can enter the market if they see that you are making good profits (and then drive your prices down).