Five forces analysis

Imagine a group of kids playing a game. There are five kids that are really good at the game and they always win. We can call these five kids the "five forces".

Now, let's say that you want to join the game and win too. But, you don't know how to beat these five forces. So, you decide to do some research and figure out how to beat them.

This is what a five forces analysis is. It's a way for businesses to understand the market they're in and figure out how to compete with other businesses.

The five forces are:

1. The threat of new entrants - This is when new kids join the game and start playing. They might be really good at the game, which makes it harder for the other kids to win.

2. The threat of substitute products or services - This is when other games or activities become popular and kids start playing those instead of the original game.

3. The bargaining power of customers - This is when the kids playing the game start demanding better rules or prizes so that they'll play the game more often.

4. The bargaining power of suppliers - This is when the kids that make the game (like the toy companies) start demanding more money for their product.

5. The intensity of competitive rivalry - This is when the five forces themselves start competing with each other to see who can win the game more often.

So, just like in the game, businesses need to be aware of these forces and figure out how to overcome them in order to succeed in the market they're in.