orter$$s Five Forces Model analyzes the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry. Its purpose is to combat these competitive forces by identifying opportunities, competitive advantages, and competitive intelligence. It is important to understand these forces, because If the forces are strong, they increase competition; if the forces are weak, they decrease competition.

The goal of this activity is for you to identify the forces in Porter$$s model.

Instructions: Match each of the forces in Porter$$s Five Forces Model to its correct description.

Threat of substitute products or services Supplier power Threat of new entrants Buyer power Rivalry among existing competitors

Match each of the options above to the items below.

The power of suppliers to drive up prices of materials

The power of competitors

The power of competitors to enter a market

The power of customers to drive down prices