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hiddentrue

Porter's five forces analysis is a framework for industry analysis and business strategy development formed by Michael E. Porter of Harvard Business School in 1979.

These forces describe the relative power of

  • Customers

  • Suppliers

  • Rivals

  • New Entrants

  • Substitutes

to determine the competitive intensity and therefore attractiveness of any given market.

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titleA version of the "Porter Forces Five" is also available in Comala Boards for Confluence Cloud
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board{"name":"Porter Five Forces","row":[{"column":[{"container":[{"key":"-","caption":"","style":"hiddenstyle"}]},{"container":[{"key":"new_entrant","caption":"Threat of New Entrants","style":"s025","description":"Profitable markets that yield high returns will attract new firms. This results in many new entrants, which eventually will decrease profitability for all firms in the industry."}]},{"container":[{"key":"-","caption":"","style":"hiddenstyle"}]}]},{"column":[{"container":[{"key":"supplier","caption":"Bargaining Power of Suppliers","style":"s025","description":"Suppliers of raw materials, components, labor, and services to the firm can be a source of power over the firm, when there are few substitutes."}]},{"container":[{"key":"rival","caption":"Industry Rivals","style":"s029","description":"For most industries, the intensity of competitive rivalry is the major determinant of the competitiveness of the industry."}]},{"container":[{"key":"customer","caption":"Bargaining Power of Customers","style":"s025","description":"The bargaining power of customers is also described as the market of outputs: the ability of customers to put the firm under pressure, which also affects the customer's sensitivity to price changes."}]}]},{"column":[{"container":[{"key":"-","caption":"","style":"hiddenstyle"}]},{"container":[{"key":"substitute","caption":"Threat of Substitute Products","style":"s025","description":"The existence of products outside of the realm of the common product boundaries increases the propensity of customers to switch to alternatives."}]},{"container":[{"key":"label-1","caption":"","style":"hiddenstyle"}]}]}]}
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For details of the Cloud app version of this board see