Six-Force Model

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DEFINITION

A design used to show how companies or industries are affected by external factors. The six-force model expands on Harvard Business School professor Michael Porter's five-force model with the addition of "complementors," or companies that produce closely related products or services, as a sixth factor.



INVESTOPEDIA EXPLAINS

The five-force model on which the six-force model is based describes the impact of existing rivals, bargaining power of customers, bargaining power of suppliers, substitutes and new entrants on a business or industry's success. These models can be used to analyze a business or industry's current position and its competitive advantage (or lack thereof).




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