Michael E. Porter, a renowned economist and business strategist, introduces the concept of five competitive forces that shape the profitability of any industry. These forces are: the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services, and rivalry among existing competitors. By analyzing the strength of each force, companies can understand the structural dynamics of their industry and develop strategies to either defend themselves against these forces or to shape them in their favor. Porter argues that a deep understanding of industry structure is crucial for both managers and investors, as it allows them to make informed decisions about positioning their companies for success and to identify truly attractive industries for investment.