Porter’s Five Forces Explained and How to Use the Model

Introduced in a 1979 Harvard Business Review article, Michael Porter’s five-force strategic analysis model continues to be a crucial tool for strategic analysts assessing the competitive dynamics of an industry.

To reflect the complexity real strategists encounter while maintaining manageable analysis, Porter identified five forces in an industry: internal competition, potential new entrants, supplier bargaining power, customer bargaining power, and the availability of substitutes. We will explore each of Porter’s five forces, address significant critiques of his approach, and demonstrate how to apply the model to specific markets.

For more details, please read Porter’s Five Forces Explained and How to Use the Model. And understand the key points of this model’s five forces, as well as its advantages and disadvantages.