Six-Force Model

Dictionary Says

Definition of 'Six-Force Model'


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 Says

Investopedia explains 'Six-Force Model'


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).

comments powered by Disqus
Hot Definitions
  1. Tech Street

    A term used in the financial markets and the press to refer to the technology sector. Companies like Intel, Microsoft, Apple and Dell are all considered to be part of Tech Street.
  2. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  3. Momentum Investing

    An investment strategy that aims to capitalize on the continuance of existing trends in the market. The momentum investor believes that large increases in the price of a security will be followed by additional gains and vice versa for declining values.
  4. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
  5. IPO ETF

    An exchange-traded fund that focuses on stocks that have recently held an initial public offering (IPO). The underlying indexes tracked by IPO ETFs vary from one fund manager to another, but index IPO ETFs are usually passively managed and contain equities that have recently been offered to the public.
  6. Maritime Law

    A body of laws, conventions and treaties that governs international private business or other matters involving ships, shipping or crimes occurring on open water.
Trading Center