The five forces (Porter)

This tool will help you:

  • Tackle the industry supply side of micro-economic analysis, with the previous tool covering the market demand side
  • Provide an analytical framework for assessing competitive intensity in each of your key product/market segments
  • Be guided in gauging industry pricing and profitability in the future

About this tool

Competitive intensity determines industry profitability.

That is the basic premise of Michael Porter’s work. And he went on to describe in detail what the fundamental forces are that drive competitive intensity.

His five forces model made its first appearance beyond a Harvard Business School lecture theatre in his Competitive Strategy: Techniques for Analyzing Industries and ...

Get 25 Need-to-Know Strategy Tools now with the O’Reilly learning platform.

O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.