Michael E. Porter’s well-known analytical framework, the Five Forces model is essential in identifying opportunities and threats facing a specific company in an industrial context. Porter developed two important assumptions that form the basis of his five forces model: (1) rather than defining competition narrowly as rivalry to explain and predict a firm’s performance, competition must be viewed more broadly through considering the other forces in an industry, (2) the profit potential of an industry is a function of the five forces that shape competition.