Analyzes the competitiveness of existing competitors, the ability of potential competitors to enter, the ability of substitutes to substitute, the bargaining power of suppliers and the bargaining power of purchasers in the Milk Tea industry.

The Porter's Five Forces model analyzes the basic competitive dynamics of an industry by bringing together a large number of different factors in a simple model. The five forces model identifies five main sources of competition, namely the bargaining power of suppliers and buyers, the threat of potential entrants, the threat of substitutes and lastly, competition from amongst firms in the same industry.

Competitive strategy in a sense stems from a firm's deep understanding of the laws of competition that determine the attractiveness of an industry. The laws of competition in any industry, whether domestic or international, whether producing products or providing services, will be reflected in these five competitive forces. Therefore, the Porter's Five Forces model is a strategic analysis tool that is often utilized by companies when formulating competitive strategies.

Methods of analysis:

In a certain sense, it belongs to the micro-analysis of the external environment analysis methods. Porter's Five Forces model is used in the analysis of competitive strategy, which can effectively analyze the customer's competitive environment. Porter's "Five Forces" analysis is a static cross-section of an industry's profitability and attractiveness.

It shows the average profitability of enterprises in the industry, so it is a measure of the industry situation, not a measure of enterprise ability. Typically, this analysis can also be used for entrepreneurial capability analysis to reveal what kind of profitability space this business has in this industry or sector.