Porter’s Five Forces is a powerful strategy tool for assessing the five key factors that influence your company’s market profitability: industry rivalry, power of suppliers, threat of substitutes, threat of new entrants, and power of buyers. Do you want to insert your product into a new market or redefine your competitive strategy? Use the Porter’s Five Forces Model to analyze the external factors that shape your market and create a corporate strategy that enhances the competitive advantages of your business.
Use the circular diagram from this slide to introduce the Porter’s five forces model and explain how buyers, substitutes, potential new entry, competitive rivalry, and suppliers influence your market.
Is it difficult for other companies to enter into your market? What are the chances of them becoming strong competitors? These are important factors you should take into consideration when developing your strategy. Use the threat of new entrants slide to keep a record of five possible competitors with real power to land in your market.
The more competitors in a market, the less opportunities for your business. If you are looking to enter a new market or conquer other segments, the first thing to identify are the current competitors. How many are they? This slide provides a detailed chart to describe these competitors and a timeline to show how the power of these companies in the market has
evolved so far.
Profitability expectations
Conducting a Porter’s Five Forces analysis will help you set the right profitability expectations for your company.
Corporate strategy
After analyzing the current situation in the market, you will be able to develop strategies to gain competitive advantages in each of the five areas.
Famous business analysis model
Porter’s Five Forces is a well-known business model used by company managers, marketers, and strategy leaders.
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