🧩 Frameworks
Porter's Five Forces
Why some industries are more profitable than others.
Five pressures shape an industry's profits: rivalry among competitors, threat of new entrants, threat of substitutes, power of buyers and power of suppliers.
The stronger these forces, the harder it is to earn high margins.
How to break it down
Industry profit
Rivalry
New entrants
Substitutes
Buyer power
Supplier power
🧮 Example
Airlines: fierce rivalry, powerful fuel suppliers and price-shopping customers → thin margins.
🎯 Interview tip
Use it to judge market attractiveness, not as the whole case structure.
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