Porter’s Five Forces Analysis is a valuable strategic planning tool for business planning and market research. This is especially true when it involves understanding the level of business competitiveness in a particular industry. Porter’s Five Forces Analysis assesses profitability, opportunity, and risk based on five critical factors in an enterprise.
These include the threat of substitute products, intra-industry competitive risks, the penetration of new competitors, the danger of losing customers, and the threat of supplier instability. The relevance of the model is to analyze the attractiveness and profitability of the sector and to observe the strength of the market position of one’s own business. At the same time, the development of the Internet has provided more power to users and buyers.