What analytical framework assesses industry profitability and structural attractiveness by analyzing five competitive dynamics?

Explanation

• Michael Porter’s Five Forces model evaluates an industry’s structural attractiveness and long-term profit potential.
• The five forces are: 1) Threat of New Entrants, 2) Threat of Substitutes, 3) Bargaining Power of Buyers, 4) Bargaining Power of Suppliers, and 5) Industry Rivalry.
• Porter also established the Generic Competitive Strategies: Cost Leadership, Differentiation, and Focus.