Porter's 5 Forces Model of Competition

The marketing is facing different challenges in 21st century to meet these before entering the business Porter model may be used to analyze the environment for new and existing both business and may be used to overcome and meet the challenges.

Threat of New Entrants : The ratio of new entrants in industry greater the ratio greater shall be intensity of the competition

Bargaining Power of Buyers:  When the competition is intense and number of producer is greater the buyer have more choice for product  switching  over  this  will increase   the   buying   power   of buyer

Threat of Substitute: As apparent from the term greater the threat of  new entrants will result in greater higher  completion that in turn will result in increase in the number of substitutes

Bargaining Power of Suppliers: superior number of supplier will provide powerful  buying power to the manufacturer/customer and vice versa

Rivalry among Competing Firms in Industry: big number of manufacturers and larger number of product variety increases rivalry amongst the competitors, which demands for more quality and customer satisfying products for meet the competition.