What is Porter's five forces model?

Porter's five forces model can help you determine where a company stands in relation to its competition and inform your investment decisions. First published in a 1979 Harvard Business Review article titled “How Competitive Forces Shape Strategy,” Michael Porter’s five forces model can help you analyze a company’s competitive profile.

What is the five forces model?

The Five Forces Model was created by Harvard Business School professor, Michael Porter and was first published in 1979. Since then, the model has become one of the most popular business strategy tools that organizations use to understand more about the main competitive forces at work in their industry.

What are Porter's five forces analysis examples?

Although, Porter’s five forces is a great tool to analyze industry’s structure and use the results to formulate firm’s strategy, it has its limitations and requires further analysis to be done, such as SWOT, PEST or Value Chain analysis. This is Porter’s five forces analysis example for the automotive industry.