IntroductionThe five competitive forces model was developed by Michael E. Porter in his book "Competitive Strategy: Techniques for Analyzing Industries and Competitors" in 1980. Since then It has become an important tool for analyzing an organization's industry structure in strategic processes. Porters model is based on the understanding that a business strategy should meet the opportunities and threats in the organization's external environment. In particular, competitive strategy should be based on understanding industry structures and how they change. Porter identified five competitive forces that shape every industry and every market. These forces determine the intensity of competition and therefore the profitability and attractiveness of an industry. The goal of business strategy should be to modify these competitive forces so as to improve the organization's position. The Porters model supports the analysis of the driving forces of an industry. Based on the information derived from the five forces analysis, management can decide how to influence or exploit particular characteristics of their industry. The Five Competitive Forces The five competitive forces are typically described as follows:1 Bargaining Power of Suppliers The term "suppliers" includes all sources of input needed to provide goods or services. Supplier bargaining power is likely to be high when: · The market is dominated by a few large suppliers rather than a fragmented source of supply, · There are no substitutes for the particular input, · Suppliers' customers are fragmented, so their power contractual is low, · The costs of switching from one supplier to another are high, · There is the possibility that the supplier integrates forward to obtain higher prices and margins. This threat is particularly serious when: · The buying industry has higher profitability than the supplying industry, · Future integration provides economies of scale for the supplier, · The buying industry hinders the supplying industry in its development (e.g. , reluctance to accept new product releases ),· The buying sector has low barriers to entry. In such situations, the buying sector often faces high margin pressure from its suppliers. Relationships with powerful suppliers can potentially reduce strategic options for the organization.2 Customer Bargaining Power Similarly, customer bargaining power determines how much pressure customers can exert on margins and volumes. The bargaining power of customers is likely to be high when purchasing large quantities volumes, there is a concentration of buyers, · The supplier industry includes a large number of small players