Essentials of Porter's Five Forces Analysis

Assess the forces impacting your industry and company in order to develop an optimal strategy.

Porter’s Five Forces is a powerful and proven framework for analyzing a company’s environment or industry and using this insight to develop a well informed response strategy. The Porter approach looks at five fundamental forces:

1. Bargaining power of suppliers
2. Bargaining power of buyers
3. Threat of substitute products or services
4. Threat of new entrants to the industry
5. Level of competitive rivalry between existing players

Understanding these forces and how they are playing out in your industry is a critical element in strategy development. In this Expert Toolkit Guide you'll get:

• Provide an overview of the Porter’s Five Forces Approach and outline how it adds value in a business context
• Outline the four key steps involved in conducting a Porter’s Five Forces Analysis
• Provide detailed questions and considerations to use when conducting a Porter’s Five Forces Analysis
• Explain the benefits and limitations of Porter’s Five Forces Analysis

Having an understanding of the Porter's Five Forces theory and an ability to apply it in a practical manner will make you an impact player.