Five Forces Analysis Porter’s Five-Forces AnalysisPorters 5 Forces is a simple but powerful tool for evaluating the attractiveness, or profit potential, of an industry. It is based on an industrial organization perspective which posits that the external environment is the primary determinant of firm success. An unattractive industry is one in which the five-forces act.
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Strength of Competition What does a five-forces analysis reveal about the strength of competition in the U.S. family clothing stores industry? Rivalry- [Very Strong] The rivalry amongst the existing established clothing store chain is pretty strong. All companies are geographically present with several hundreds of stores, all have capabilities to outsource manufacturing or purchase from.
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