Porter's Five Forces Model

Click arrow to add template to existing board
views
1.7K
copies
257
Report

Porter's Five Forces Model

The Porter's Five Forces Model, developed by Michael E. Porter, is a framework used for analyzing the competitive forces within an industry. The aim is to evaluate the attractiveness and profitability potential of an industry.

Here's a breakdown of the model and its utility:

Description:

  1. Competitive Rivalry: Measures the intensity of competition among existing firms in the industry.

  2. Supplier Power: Assesses the ability of suppliers to drive up the costs of inputs.

  3. Buyer Power: Evaluates the strength of customers to drive down prices.

  4. Threat of New Entry: Examines the ease with which new competitors can enter the industry.

  5. Threat of Substitution: Analyzes the extent to which alternative products or services pose a threat.

Objectives Achieved:

  1. Industry Analysis: Helps in understanding the underlying forces at work in an industry.

  2. Strategic Positioning: Assists in determining the strengths and weaknesses of a company in relation to the forces at play in its industry.

  3. Profitability Potential: Helps in assessing the profitability potential of an industry over the long term.

  4. Informed Decision-Making: Facilitates better strategic decisions regarding entering or exiting industries, forming alliances, etc.

Usage:

Add your findings in the Text fields and adjust the bars accordingly.

There are two Frames: The first is an explanation for Product Marketing, the second is an applied example for the smartphone industry.

Beneficiaries:

  1. Business Leaders and Strategists: Can use this model to formulate competitive strategies and make informed business decisions.

  2. Investors: Helps in evaluating the attractiveness of an industry before investing.

  3. Market Analysts: Useful for understanding market dynamics and predicting industry trends.

  4. Marketing Professionals: Can employ this model to understand the competitive landscape and position their products/services effectively.

  5. Entrepreneurs: Helps in assessing the viability and potential profitability of entering a new market.

The Porter's Five Forces Model is a robust tool that can offer valuable insights for a variety of stakeholders looking to understand, evaluate, and strategize within a particular market or industry.

Categories

Comments

Read our Community Guidelines and Terms of Use.

Share your comment with the Miroverse community.

Similar templates