Definition: Porter's Five Forces is a strategic framework developed by Michael Porter that helps analyze the competitive environment of an industry or market. It consists of five key forces that shape the competitive intensity and attractiveness of an industry, including the bargaining power of suppliers, bargaining power of buyers, threat of new entrants, threat of substitute products or services, and rivalry among existing competitors.  
Supplier Bargaining Power: Supplier bargaining power is one of the five forces in Porter's Five Forces framework. It refers to the ability of suppliers to influence prices, terms, and conditions of supply. Higher supplier bargaining power can reduce profitability by increasing costs or limiting options for businesses in an industry.  

Buyer Bargaining Power: Buyer bargaining power is another force in Porter's Five Forces framework. It refers to the ability of buyers to influence prices, negotiate terms, and demand concessions from businesses. Higher buyer bargaining power can reduce profitability by limiting pricing power or increasing costs for businesses.  

Threat of New Entrants: The threat of new entrants is a critical factor in Porter's Five Forces framework. It refers to the likelihood of new competitors entering an industry or market. Higher threat of new entrants can increase competition, reduce market share, and impact profitability for existing businesses.  

Threat of Substitute Products or Services: The threat of substitute products or services is another force in Porter's Five Forces framework. It refers to the availability of alternative products or services that can meet similar customer needs or provide similar benefits. Higher threat of substitute products or services can impact demand, pricing, and market share of existing businesses.  

Rivalry Among Existing Competitors: Rivalry among existing competitors is a significant force in Porter's Five Forces framework. It refers to the level of competition and intensity of rivalry among businesses in an industry. Higher rivalry among existing competitors can lead to price wars, reduced profitability, and increased competitive pressures.  

Industry Analysis: Porter's Five Forces provides a systematic approach to analyze the competitive dynamics of an industry or market. It helps businesses understand the competitive forces at play and assess the attractiveness and profitability of an industry, which can inform strategic decision-making.  

Strategic Planning: Porter's Five Forces is a valuable tool for strategic planning. It helps businesses identify opportunities and threats in the external environment, and formulate strategies to mitigate risks, leverage strengths, and gain a competitive advantage.  

Competitive Advantage: Porter's Five Forces can help businesses identify sources of competitive advantage. By understanding the forces that shape the competitive environment, businesses can develop strategies to enhance their bargaining power, reduce threats, and differentiate themselves from competitors.  

Industry Dynamics: Porter's Five Forces recognizes that industry dynamics change over time. The forces influencing an industry can evolve, and businesses need to continually monitor and adapt their strategies in response to changes in the competitive environment.  

In conclusion, Porter's Five Forces is a widely used strategic framework for analyzing the competitive environment of an industry or market. It provides insights into the bargaining power of suppliers and buyers, threat of new entrants, threat of substitute products or services, and rivalry among existing competitors. It is a valuable tool for strategic planning, understanding industry dynamics, and identifying sources of competitive advantage.