Porter’s Five Forces
By: A Staff Writer
Updated on: Jul 19, 2024
What: Assesses the competitive intensity of an industry by looking at: Threat of new entrants, Power of suppliers, Power of buyers, Threat of substitutes, and Rivalry within the industry.
Who: Michael Porter, influential Harvard Business School professor.
Why: Lets entrepreneurs understand their bargaining position and how to gain an edge.
When: When entering a new market, evaluating partners strategically, or dealing with major competitive shifts.
How:
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- Assess each of the five forces carefully for your industry.
- Identify where your business is most/least vulnerable.
- Strategize: Can you make changes that lessen a threat or boost your power?