Porters five forces determines how competitive an industry is and therefore how attractive an opportunity it is for a business to set up in the industry.The five forces include:barriers to entry- factors that prevent new competition entering the market for example, government laws.supplier power- if supplier power is high this will likely increase costs and lower profits, this may be the case if they are the only supplier, or the business is not the only customer.degree or level of competition- this means how many businesses are already in operation, an example to consider is how within the EU member states have competition laws so foreign businesses can compete with domestic ones.substitutes- this is the number of alternate options, for example a substitute for flying may be using a boat.buyer power- the higher this is, the less likely a business will be able to set prices and increase profits.