"The competition is alive and hungry - continue to relentlessly move the business forward!"
The five forces are the following:
II. Threat of Substitutes
III. Buyer Power
IV. Supplier Power
V. Barriers to Entry / Threat of Entry
The threat of substitutes refers to products in other industries. The threat exists when the prices change of a substitute product affects the demand. A product's price elasticity is affected by substitute products - as more substitutes become available, the demand becomes more elastic since customers have more alternatives. Substitutes constrain the ability to raise prices.
Strategic Planning - Porter's 5 Forces - Industry Analysis (Part 1 of 5)
Reference additional Strategic writings: