Porter’s Five Forces Method scheme structure

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Porter’s Five Forces Method is a strategic business tool that helps companies determine the competitive forces at work in a particular industry. Porter’s Five Forces Method provides an overview of the industry by identifying five key factors that impact its success. These are: 
The threat of new entrants: The threat of new entrants refers to the likelihood that competitors will enter into an industry, which could increase competition and decrease profitability. The bargaining power of buyers: Bargaining power refers to the ability for buyers to negotiate with sellers, which makes it easier for them to get what they want at a cheaper price. The bargaining power of suppliers: The bargaining power of suppliers refers to the ability for suppliers to charge higher prices than their competitors because they have more bargaining power than their competition does.
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