First described by Michael Porter in his classic

1979 Harvard Business Review article, Porter’s insights

started a revolution in the strategy field and continue to
shape business practice and academic thinking today. A
Five Forces analysis can help companies assess industry
attractiveness, how trends will affect industry competition,
which industries a company should compete in—and how
companies can position themselves for success.

Porter's Five Forces is a framework that helps

organizations analyzes the competitive dynamics in their
industry. The five forces include:

The threat of new entrants:

This force examines how easy or difficult it is for new
competitors to enter the market. Factors such as barriers
to entry, economies of scale, and brand loyalty can impact
the threat of new entrants. The threat of entry also
depends on the capabilities of the likely potential entrant.
If there are well established companies in the industry
operating in other geographic region, for the threat of
entry rises

The bargaining power of buyers:

This force assesses how much power customers have in
the market. Factors such as the number of buyers, their
price sensitivity, and the availability of alternative
products can influence the bargaining power of buyers.
The bargaining power of suppliers:
This force looks at how much power suppliers have in
the market. Factors such as the number of suppliers, the
uniqueness of their products or services, and their ability
to dictate terms can impact the bargaining power of
suppliers.

The threat of substitute products or services:

This force considers the likelihood of customers
switching to alternative products or services. Factors such
as the availability of substitutes, their quality and price,
and customer loyalty can affect the threat of substitute
products.

The intensity of competitive rivalry:

This force examines the level of competition among
existing competitors in the market. Factors such as the
number of competitors, their market share, and their
strategies for differentiation and pricing can influence the
intensity of competitive rivalry.

By analyzing these five forces, organizations can better

understand the competitive landscape of their industry
and develop strategies to position themselves for success.
This exploration can help businesses identify potential
threats and opportunities, and make informed decisions to
stay competitive in the market.
Reference- Harvard business sch.