Hello, everyone. Welcome to Business School 101.An industry is a group of incumbent companies facing more or less the same set of suppliers and buyers. Firms competing in the same industry tend to offer similar products or services to meet specific customer needs.

Harvard Business School Professor, Michael Porter developed a highly influential five forces model to help managers understand the profit potential of different industries and how they can position their respective firms to gain and sustain competitive advantage.

Those forces are: Threat of entry. Power of suppliers. Power of buyers. Threat of substitutes. and Rivalry among existing competitors.

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