An industry is seen as a group of firms producing products that are close substitutes.

In the course of competition, these firms influence one another. The Five Forces of Competition, introduced by Michael Porter in 1980, is used to analyze the competitive structure of an industry. According to Porter, the state of competition depends upon five competitive forces. Those are competitors, suppliers, buyers, substitutes and new entrants. Together, they determine the longrun profit potential of an industry and shall be used to define the position of Binani Cement.