Six forces model

The six forces model is a way of looking at how a company operates. It helps you to think about how the company is doing in six different areas - competitive rivalry, supplier power, buyer power, threat of substitutes, threat of new entrants, and government regulation. Each of these forces affects the company's success.

Competitive rivalry looks at how competitors are doing and how they might be affecting your company. Supplier power looks at how much power your suppliers have over you, like if they can charge you more for the materials or services you need. Buyer power looks at how much power your customers have over you, like if they can demand lower prices. Threat of substitutes looks at if there are other products on the market that can work just as well as yours. Threat of new entrants looks at if there are other companies who could try to steal your customers. And government regulation looks at what the government can do to help or hurt your business.

By looking at each of these six forces, you can get a better idea of how successful your company is and how you can make it even better.