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Competitive Forces Analysis

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What it is for: Competitive forces analysis is a strategy method that examines five pressures on a market: rivalry, new entrants, substitutes, buyer power and supplier power. You leave with a one-page map of the five forces around a single service, a pressure level and reason for each, a list of assumptions to check, and two or three response questions with owners.

Who it helps: Strategy, finance and operations leads setting direction for a service or market, or deciding whether to enter one.

When to use it

  • You are setting strategy for a service, product line or market and need a clear outside-in view.

  • Leaders disagree about where the real threat comes from and the debate keeps circling.

  • You are considering entering a new market or launching a new offer and want to know how hard it will be.

How to use it

  1. Fix the scope: the service or market and a time frame.

  2. Prepare a one-page evidence pack per force before the session.

  3. Capture pressures for each force, then attach evidence to every note.

  4. Agree a low, medium or high pressure level per force, with a reason.

  5. Turn the strongest forces into response questions and give each an owner.

Tip: Keep one service per analysis. If you want three markets, run three short sessions.

Credits and sources: Original Tiremesù worksheet and wording. Method credit: Michael E. Porter. Further reading: Harvard Business School, Institute for Strategy and Competitiveness https://www.isc.hbs.edu/strategy/business-strategy/Pages/the-five-forces.aspx

Full guide and film:https://www.tiremesu.com/guides/competitive-forces-analysis

Tiremesu

Innovation, design and strategy methods @ Tiremesu LTD

Tiremesù — Treviso dialect for “lift me up” — is an innovation platform organizations use to run their innovation practice end to end. Here we share the methods behind it: innovation, design and strategy tools you can use tomorrow. Every template links to a free, full method guide and a short video at tiremesu.com and youtube.com/@Tiremesu. In English and Arabic, with more languages coming.


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