Answers:
Porter designed a five forces model to evaluate, plan, and decide on a strategy.
The five forces are
1) Competition among companies which indicate the degree of competition, for example, are there a lot of bakeries of this nature in Salem and neighbouring districts;
2) Threat of new companies entering the market, which is high in this case since you don’t need any special capability except the capability to make good bakery products,
3) The possibilities of using substitute products, for example, can people use other eatable products than bakery products if they choose to,
4) bargaining power of the suppliers, for example, if there are no good raw material suppliers for a bakery like Sambhavi, the purchase has to be made anyway but if there are many good raw material suppliers, then Sambhavi can bargain better, and
5) The bargaining power of the customers which is self-explanatory.