Five Forces Model by Michael Porter
Five Forces Model by Michael Porter
Porter's competitive five forces model is probably one of the most commonly
used business strategy tools and has proven its usefulness in numerous
situations. When exploring strategic management models, you also might
want to check out the BCG matrix, SWOT analysis, IFE matrix, and SPACE
matrix models.
Porter's Five Forces model provides suggested points under each main
heading, by which you can develop a broad and sophisticated analysis of
competitive position. This can be then used when creating strategy, plans,
or making investment decisions about your business or organization.
Numerous economic studies have shown that different industries can sustain
different levels of profitability. This can be attributed to differences in
industry structures.
• Barriers to entry
• Threat of substitutes
• Bargaining power of buyers
• Bargaining power of suppliers
• Rivalry among the existing players
Some later economists also consider government as the sixth force in this
model.
Automobile Industry,
Steel Industry,
Real Estate Industry,
Tourism Industry,
Energy Sector,
Textile Industry,
Airlines Industry,
Medical Industry,
Biotechnology Industry,
Electronics
Hardware
Power industry.