Porter's Five Forces Model


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:


  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.


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.


  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.


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