Porter's Five Forces

Strategic PlanningCompetitive AnalysisBusiness Strategy

Porter’s Five Forces is a framework for analyzing the competitive forces within an industry to determine profitability and strategy.

Introduction

Porter’s Five Forces is a framework for analyzing the competitive forces within an industry to determine profitability and strategy.

Key Forces

  1. Threat of New Entrants: Barriers to entry for new competitors.
  2. Bargaining Power of Suppliers: Influence suppliers have on pricing.
  3. Bargaining Power of Buyers: Influence customers have on pricing.
  4. Threat of Substitutes: Risk posed by alternative products or services.
  5. Industry Rivalry: Competition among existing players.

Applications

  • Strategic decision-making in various industries.
  • Assessing market entry feasibility.

Related Resources

  • Book: "Competitive Strategy" by Michael E. Porter.
  • Tools: Competitive benchmarking software.

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