Porter’s Five Forces analysis
Michael Porter (1985) identified five factors, which he argued impacted the
performance of companies within market boundaries: the threat of new entrants to
the market; the threat of substitute products or services; the bargaining power of
suppliers; the bargaining power of buyers and the intensity of the rivalry in the
market. It is common for strategists to analyze these factors in order to predict the
likely success of a company in a market. Below, these factors are applied to the
airline industry.