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The analysis technique that effectively helps in understanding the competitive environment is Porter's Five Forces. This model focuses specifically on assessing the competitive dynamics within an industry by examining five critical forces that shape competition:

1. **Threat of new entrants**: This force assesses how easy or difficult it is for new competitors to enter the market. A high threat of new entrants can pressure existing companies to keep prices low and innovate continually.

2. **Bargaining power of suppliers**: This examines the power suppliers have to drive up prices or reduce the quality of goods and services. If suppliers hold significant power, they can affect the profitability of firms in the industry.

3. **Bargaining power of buyers**: This analyzes the customers' ability to affect pricing and quality. When buyers have strong bargaining power, they can demand lower prices or higher quality, putting pressure on companies to meet these expectations.

4. **Threat of substitute products or services**: This looks at the likelihood that customers will switch to alternatives if they perceive them to offer better value. A high threat of substitutes can reduce potential profits in an industry.

5. **Industry rivalry**: This force examines the intensity of competition among existing firms. High rivalry can lead to price wars and increased costs for