Business profitability can be affected by the following two factors as noted by Porter:
a. Industry structure and competition within the industry: Porter used the Five Forces model; (Threats from potential entrants, Threats from substitute, Suppliers’ bargaining power, Customers’ bargaining power, Competitive rivalry) to explain the factors affecting competition.
b. At the level of the individual company, achieving a sustainable competitive advantage.
Sustainable competitive advantage is achieved by creating value for customers.