Porters 5 Forces

Published: 2021-09-13 17:25:12
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Porter's five forces

Porter's five forces are used for analysis of external environment. Analysis is done for judging the industry attractiveness from an Incumbent point of view. In Porter's five forces framework, we assess the external environment on following heads.

Overall assessment
1 Intensity for rivalry
2 the threat of entry
3 bargaining power of buyers
4 bargaining power of suppliers
5 the threat of substitutes

Assessment along these heads can be further done by judging the attractiveness of an industry on following sub heads.
The Threat of Rivalry
The Threat of Rivalry(PART A)
1 Number of competitors
2 Industry growth
3 Fixed cost/storage cost
4 Differentiation
5 Switching cost
6 Openness of terms of sale
7 Excess capacity
8 Strategic stakes
The threat of rivalry -Barriers to exit (PART B)
1 Asses specialization
2 Fixed cost of exit
3 Govt. Restrictiveness
The threat of entry
1 Economies of scale
2 Product differentiation

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