Porter's 5 Forces

 

The Porter’s Five Forces model is used to analyze the attractiveness of a particular industry. The analysis identifies five fundamental forces:

 

 

1. Threat of new entrants
• How easy or difficult is it for new players to enter the market?
• What barriers exist for new entrants?
2. Threat of substitutes
• How easily can the product/service be substituted?
3. Bargaining power of suppliers
• How strong is the position of suppliers?
• Are there a few suppliers to choose from or many?
4. Bargaining power of buyers
• How strong is the position of buyers?
5. Rivalry among existing players
• How strong is the competition between existing players?
• What companies dominant the industry; are most players equal in size and strength?

 

Use your findings to determine the attractiveness of the industry analyzed.