This model supports the analysis and evaluation of a company's competitive environment. The industry structure strongly influences the strategies potentially available to the company.

This model may be used to represent interrelationships between a company, the resulting products or services, and the market partners. It is possible to show which customers are using which products or services, which products or services are provided by suppliers, and which replacement products and services are offered by (potential) competitors. Thus, a view on the competitive situation of the company can be given.

The following figure illustrates an example of a competition model.