Resources · Management
Porter’s Five Forces
What it means
The framework examines competitive pressure from rivals, entrants, substitutes, buyers and suppliers within a clearly defined industry.
How to do it
1. Define the industry
Set the product, geography and time period before rating any force. A vague boundary produces vague conclusions.
2. Support each force
Use current, relevant evidence about concentration, switching costs, entry barriers, alternatives and bargaining power.
3. Connect forces to action
Explain which pressures matter most and what they imply for the organisation’s choices.
Common mistakes & limitations
A framework is not evidence
Do not score forces by intuition alone or treat every force as equally important. The model is a structure for analysis, not a prediction.
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