Five forces competitive market and industry analysis framework

What is Five forces competitive market and industry analysis framework? The below diagram explains Five forces competitive market and industry analysis framework. This chart shows an important concept or a framework to help one run their business, improve company's strategy, internal processs, enhance project management, technology, and client experience.

Five forces competitive market and industry analysis framework

The originator of the five forces model is Michael Porter, a Harvard Business School (HBS) professor whose theories remain instrumental to business strategy even today. Porter’s five forces framework is utilized for strategic industry analysis, and focus on the following: Barriers to Entry – The difficulty in partaking in the industry as a seller.

Porter’s five forces are: 1. Competition in the industry 2. Potential of new entrants into the industry 3. Power of suppliers 4. Power of customers 5. Threat of substitute products 1 

The Porter’s Five Forces framework was created by Harvard Business School’s Michael E. Porter in 1979, as a response to the popular SWOT analysis. The framework is widely used to analyse an industry and when planning corporate strategy. It can also be used to help companies manage their resources better, and get better investments.