Can we apply PORTER'S FIVE FORCES on market?

YES... here is the explanation :-

Perfect competition market: 

It is type of a market where all the firms sell homogenous products. So there are 'n' number of firms in this market. This type of market also has large number of buyers. Freedom of entry is unrestricted and all the firms are price takers(company that accepts prevailing prices in the market of its products)

Hereby perfect competition market can be analysed by Porter's five forces(industry analysis):

New entrants:

Firms enter and exit the market all the time and it is easy to enter the market for new entrants in perfect competition market. The entry of new firms depends on barriers of market like economies of scale, network effects, brands and government licensing.

Buyers:

As there are 'n' number of firms for the homogeneous products so buyers become price sensitive(consumers behaviour is affected by price of the product). And should also consider the bargaining power of buyer because this influences the revenue and sales of firm.

Suppliers:

We can see more number of suppliers in perfect competition market. The factors to be considered are the uniqueness of suppliers product, discounts, bargaining power. If the firm wants to decrease or increase the cost of production, it can vary the inputs from suppliers. Delivery of goods on time is also considered.

Substitutes:

In perfect competition market, we can easily find the substitutes for main products. As the consumers are price sensitive, they take a decision to purchase a cheaper substitute. Here the firms analyses how they can produce the cheaper substitutes.

Competitors:

There is a strong competition among the firms in perfect competition market, because nature of product is homogeneous. All the firms have equal share and power in the market or we can also see few dominant firms in the market.