Porter's Five Forces
(1) Competitive Rivalry-number and strength of competitors. Who are they and how do they impact your business? You have no competitors, really? Are you sure?
(2) Supplier Power-how easy is it for suppliers to raise their prices? Do you have limited suppliers and limited resources? One example we used was plastic pellets, you need oil, and the number of suppliers is limited.
(3) Buyer Power-how easy is it for buyers to bring your prices down? Do they have many alternatives or choices to buy your type of product or an alternative?
(4) Threat of substitution. Can your product be replaced? We talked about Blockbuster Video, 5 billion dollar company gone. It was substituted by Redbox and Netflix
(5) Threat of new entry- companies ability to enter into your market. How easy is it, what type of barriers do they have to go through and what would your company have to do to enter a new market?