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Porter's Five Forces Model

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Porter's five forces model is the most popular tool for analyzing the level of competition in an industry. Considering your own industries, which are the primary sources of competitive intensity? Do you deal with powerful buyers or suppliers? Are there ready substitutes for your product, or is it unique? What is the potential for new entrants?

Considering these factors let's discuss the degree of rivalry and the nature of competition in our industries and which factors are most significant?

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In my industry, the primary sources of competitive intensity are the threat of new entrants into the industry, as well as the bargaining power of the customer base that is served within my industry. In the cleaning franchise industry, there are many ways in which new entrants can enter this industry, with very few methods to prevent them from becoming major players within the industry, and thereby threatening the profitability of established businesses. In many cases individuals will set out to start their own cleaning companies, thereby sidestepping the need to franchise their organization, which gives them much more freedom and leeway to solicit ...

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