Using the five forces model of competition to determine the character and strength of the competitive forces within a given industry involves

gauging the overall strength of competition based on how many industry rivals are operating with a competitive advantage and how many are operating at a competitive disadvantage.

building the picture of competition in three steps: $(1)$ identify the different parties involved, along with specific factors that bring about competitive pressures; $(2)$ evaluate how strong the pressures stemming from each of the five forces are $($strong$,$ moderate or weak$)$; and $(3)$ determining whether the collective impact of the five competitive forces is conducive to earning attractive profits in the industry.

building the picture of competition in two steps: $(1)$ determining which rival has the biggest competitive advantage and $(2)$ assessing whether the competitive advantages possessed by various industry members allow most industry members to earn above$-$average profits.

evaluating whether competition is being intensified or