Abstract: This research determines the competitive advantage of the service sector in Nueva Ecija through the application of Porter’s Five Forces, employing descriptive correlational research. Data collection involved a researcher made survey questionnaire administered to 150 respondents, comprises of 50 managers, employees, and customers across three cities in Nueva Ecija.

The results show that majority of surveyed businesses have been operating for 11 to 16 years, typically family-owned, and employ 5 to 10 staff members. They primarily offer full-service dining experiences and exhibit a preference for adopting Point of Sale (POS) systems for their technological infrastructure.

Likewise, respondents highlight essential strategies for maintaining competitiveness, including fostering strong partnerships, understanding competitors' pricing tactics, and managing buyer power and supplier relationships effectively. They also emphasize the importance of countering substitution threats by offering locally sourced unique ingredients. There is a consensus on proactive measures to sustain competitiveness and overcome industry challenges.

Moreover, respondents’ express confidence in the industry's resilience against new entrants, stressing the significance of continuous innovation, adapting to consumer preferences, and leveraging economies of scale and operational efficiencies. The analysis of demographic profiles unveils nuanced relationships between various factors and competitiveness, emphasizing the intricate dynamics shaping the sector's landscape.

Lastly, the researcher proposes actionable activities based on the study's findings, highlighting the importance of understanding these dynamics for businesses to formulate effective strategies and enhance competitive positions in Nueva Ecija's dynamic market.

Buyer Power, Competitive Rivalry, Supplier Power, Threat of New Entry, Threat of Substitution

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