Porter’s Five Forces Model
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Import competitor, customer, and supplier research data along with industry and environmental factors from external sources to visualize on the canvas for easier analysis.
Import images and vectors to the canvas and embed documents with in-app previews to provide more context with relevant resources.
Notes to add detailed docs, attachments, links and more on each item to capture details and the big picture in a single space.
Create custom databases for any kind of information from competitor and customer profiles to market research and product roadmaps.
Create Strategies to Capitalize on Strengths
Multiple strategy frameworks and templates to get started; SWOT, Ansoff Matrix, Scenario Planning, Strategic Grouping, BCG Matrix, and many more.
Configurable color themes and formatting capabilities to highlight the size and scale of each competitive force in favor of and against you.
Whiteboard with freehand drawing to assist with visualizing strategies and freehand note taking during meetings and brainstorming sessions with stakeholders.
Use frames inside the infinite canvas to split canvas into action plans, Kanban boards, timelines, grids, and more to organize your strategic marketing projects.
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Use @mention comments to have discussions and follow ups on the same canvas.
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Multiple access levels and roles to streamline managing, sharing, editing, and reviewing strategies.
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What Is Porter’s Five Forces Model?
Porter’s five forces model is a strategic framework that helps organizations understand the intensity of competition in an industry, its attractiveness and profitability level. The model focuses on a set of five factors that help understand the competitive strength and the market position of an organization. The 5 forces are; threat of new entrants, threat of substitutes, bargaining power of suppliers, bargaining power of buyers, and intensity of competitive rivalry.
How to Use Porter’s Five Forces?
- When using Porter’s five forces model to analyze your competitive landscape, you will be looking at each of the forces in turn. It is better to use a worksheet template to record the information you gather.
- Competitive rivalry: This is where you need to consider the number of competitors in the industry and the effect they have on you. The competitive rivalry could be high when there are multiple competitors in the industry and the industry growth rate is slow. Here you may need to devise strategies to respond to and overcome the competition.
- Supplier power: Look at how many potential suppliers are there in the market, how scarce is the raw material, their service and how easy it is for them to increase their prices. How expensive would it be to switch suppliers or can you find substitute material?
- Buyer power: The buyers have the power to drive prices low and demand higher quality products. Here you need to concentrate on how many buyers there are in the market, the size of their orders, how easy it would be for them to switch from you to your competitors.
- Threat of new entrants: If a new business can easily enter and establish themselves in your industry that may affect you negatively, and intensify the competition in the market. Consider the existing entry barriers, how easy it is to get access to suppliers and distributors, rules and regulations, etc.
- Threat of substitute products: Are there any substitute products your customers can use instead of yours? If so, that may pose a threat to you. Here you need to focus on how many substitutes are there in the market, what’s their quality and price and how easily your buyers can find them.
- Finally, study the situation you are in based on the analysis you did. Develop strategies to improve your industry position to strengthen it and mitigate the risks posed by each force.