Porter’s 5 forces is a model that is used to evaluate business risk when an appraisal is done towards large corporate customers. Examine how this model is used by lenders to determine the long-term profitability and performance of a company, using an example.

Porter's 5 Forces is an analytical model that will be very useful for the marketing managers for making their marketing strategies more strengthens. It will give an extra edge while competing with other companies for sure. The 4 forces are given below.

1.Competitive rivalry - The first aspect to analyze is the amount of competition your company faces. There mey be large competition or relaticely less competition depends on the work nature and other factors. Think both on a macro and micro scale about the number of direct competitors you have in your industry and the products/services they offer in comparison to yours.

2.Threat of substitute products - Company needs to find out how the customer’s lives have changed as your company has grown. For example, you may sell a piece of software that automates a process or synchronizes activity into one platform. As user behaviour changes, you can find opportunities to update your product, or even grow a new service offering. This is important in avoiding substitute goods.

3.Bargaining power of buyers - This is very important because customers always look for get additional benefit so they will always bargain at maximum . So as a company we should ensure that we have enough gain by doing such transaction .so there should be an adequate setup for meeting this goal.

4.Threat of new entrants - The entrance of new similiar company will increase the competition in the market and we are not able to identify the strategies which they are going to apply. So it will be very very difficult for the companies to set up a new strategy which can dominate over new companies. For example a new company will launch by providing different offers and discounts for the customers so it will definitely attract the customers and our business will go down. In order to avoid these situation we should ensure that we have done a great relationship with our customers.

5.Bargaining power of suppliers - The greater the number of suppliers available to you, the easier it is to switch to a cheaper alternative. So it will depends on the competitor we have and the quality we provide till the day.