Step 1: Recall the famous business strategy framework by Michael Porter.
Step 1: Michael Porter, a Harvard Business School professor, developed a framework for analyzing the competitive forces within an industry to understand its attractiveness and profitability.
Step 2: List Porter's Five Forces.
Step 2: The framework is known as "Porter's Five Forces" and includes:
Threat of New Entrants: How easy it is for new competitors to enter the market.
Bargaining Power of Buyers: How much power customers have to drive down prices.
Bargaining Power of Suppliers: How much power suppliers have to drive up the price of inputs.
Threat of Substitute Products or Services: The likelihood of customers finding a different way of doing what your product does.
Rivalry Among Existing Competitors: The intensity of competition among current players in the market.
Step 3: Count the forces.
Step 3: As the name implies, there are five forces in this model.