Which model is commonly used to evaluate the competitive landscape?

The Porter's Five Forces model is commonly used to evaluate the competitive landscape because it provides a structured way to assess the various factors that influence competition within an industry. This model identifies five key forces that shape the competitive environment:

1. The threat of new entrants, which assesses how easily new competitors can enter the market and challenge existing players.
2. The bargaining power of suppliers, which examines how much influence suppliers have in affecting the prices and availability of inputs needed by companies.

3. The bargaining power of buyers, which considers how much power customers have to drive prices down or demand higher quality.
4. The threat of substitute products or services, which looks at the availability of alternatives that customers can turn to instead of a company’s product.
5. The intensity of competitive rivalry among existing firms, which analyzes how fiercely companies compete for market share.

By evaluating these forces, businesses can better understand their position in the market, anticipate shifts in competitive dynamics, and identify potential strategic advantages. This model is particularly effective because it not only focuses on direct competitors but also incorporates suppliers, customers, and potential new entrants, providing a comprehensive view of the competitive landscape.

While SWOT analysis, the Boston Consulting Group Matrix, and PEST analysis are all valuable tools in