Have you heard of Porter's Five Forces Model?

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💡Have you heard of Porter's Five Forces Model?

This theory is an economic model developed by Michael Porter in 1979 that is used to analyze an industry's competitive environment and to understand the underlying profitability and attractiveness of a given market.

The Porter's Five Forces Model looks at five unique factors: supplier power, buyer power, threat of new entrants, threat of substitutes, and rivalry among existing players in the industry.

📚 For example:

If the threat of new entrants is low in an industry, existing players will have less competition and can benefit from higher profit margins. 

On the other hand, if the threat of substitutes is high in an industry, existing players will have to continually innovate and create new products in order to remain competitive.

You can apply Porter's Five Forces Model to assess the attractiveness of a given market and understand the underlying dynamics of competition in an industry.

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