Porter's Five Forces Model
Michael E. Porter's five forces of competitive position model and diagrams
Michael Porter's famous Five Forces of Competitive Position model provides a simple perspective for assessing and analyzing the competitive strength and position of a corporation or business organization.
New Market Entrants, eg:
• • • • • entry ease/barriers geographical factors incumbents resistance new entrant strategy routes to market
Supplier Power, eg:
• • • • • brand reputation geographical coverage product/service level quality relationships with customers bidding processes/capabilities
Competitive Rivalry, eg:
• • • • • number and size of firms industry size and trends fixed v variable cost bases product/service ranges differentiation, strategy
Buyer Power, eg:
• • • • • buyer choice buyers size/number change cost/frequency product/service importance volumes, JIT scheduling
Product and Technology Development, eg:
• • • • alternatives price/quality market distribution changes fashion and trends legislative effects
© alan chapman 2005, based on Michael Porter's Five Forces of Competitive Position Model. Not to be sold or published. More free online training resources are at www.businessballs.com. Alan Chapman accepts no liability.
American Michael Porter was born in 1947. After initially graduating in aeronautical engineering, Porter achieved an economics doctorate at Harvard, where he was subsequently awarded university professorship, a position he continues to fulfil at Harvard Business School. His research group is based at the Harvard Business School, and separately he cofounded with Mark Kramer the Foundation Strategy Group, 'a mission-driven social enterprise, dedicated to advancing the practice of philanthropy and corporate social investment, through consulting to foundations and corporations'. A prime example of someone operating at a self-actualization level if ever there was one. After his earlier work on corporate...
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