> For the complete documentation index, see [llms.txt](https://www.designreference.xyz/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://www.designreference.xyz/leadership/strategy/market-analysis/6-forces.md).

# 6 Forces

The Six Forces Model is a strategic framework used to analyse the competitive landscape of an industry. 

By analysing these factors, businesses can gain a better understanding of their competitive environment and develop strategies to improve their competitive position. 

It was developed by Michael Porter and considers the following factors:

1. **Rivalry among existing competitors**\
   This refers to the intensity of competition between existing players in the industry.
2. **Threat of new entrants**\
   This refers to the potential for new competitors to enter the market and disrupt the existing competition.
3. **Bargaining power of buyers**\
   This refers to the ability of customers to influence prices and terms of sale.
4. **Bargaining power of suppliers**\
   This refers to the ability of suppliers to dictate terms and conditions to businesses.
5. **Threat of substitute products**\
   This refers to the availability of alternative products or services that can satisfy customer needs.
6. **Complementors**\
   These are businesses that offer products or services that enhance the value of a company's offerings.

#### Further Reading

{% embed url="<https://betterhumans.pub/5-frameworks-for-solving-business-problems-that-will-make-you-stand-out-8690f4cc55c7>" %}


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