Porter's Five Forces
Introduced by Michael E. Porter in his 1979 Harvard Business Review article, Porter's Five Forces is the gold standard for analysing the competitive intensity and attractiveness of an industry. The framework examines five structural forces that shape competition: the Threat of New Entrants (how easy is it for new competitors to enter?), Bargaining Power of Suppliers (how much leverage do suppliers hold?), Bargaining Power of Buyers (how much power do customers have?), Threat of Substitute Products or Services (can customers satisfy the same need another way?), and Competitive Rivalry (how intense is competition among existing players?). In a workshop setting, Five Forces analysis moves teams beyond fixating on direct competitors to see the full competitive system surrounding their business. Each force is rated for its current intensity and direction of travel. The output reveals which forces constrain profitability most, where the firm has strategic leeway, and which structural shifts (regulatory, technological, demographic) are likely to reshape the competitive landscape. It pairs naturally with PESTLE for macro context and SWOT for internal response planning.
Cómo ejecutarlo
- 1
Set the scope: define the specific industry or market segment you are analysing. Ambiguity here makes the whole exercise vague.
- 2
Work through each of the five forces systematically — dedicate 10–15 minutes per force.
- 3
Competitive Rivalry: Who are the main competitors? How similar are their products? How intense is price competition? Rate overall intensity: Low / Medium / High.
- 4
Threat of New Entrants: What are the barriers to entry (capital, regulation, brand, scale)? Could a tech player or adjacent industry disrupt? Rate: Low / Medium / High.
- 5
Bargaining Power of Suppliers: How many suppliers exist? Are inputs commoditised or specialised? Could key suppliers integrate forward? Rate: Low / Medium / High.
- 6
Bargaining Power of Buyers: Are customers fragmented or concentrated? How price-sensitive are they? Can they switch easily? Rate: Low / Medium / High.
- 7
Threat of Substitutes: What alternative ways exist to meet the same customer need? Are substitutes improving in price or performance? Rate: Low / Medium / High.
- 8
Synthesise: Map all five forces on the hub-and-spoke diagram, discuss the overall industry attractiveness, and identify the 2–3 forces requiring strategic response.
Consejos
The biggest mistake is analysing at too broad a level ('the tech industry').
Define the specific segment tightly.
Rate forces directionally — is the force strengthening or weakening over time? That matters as much as current intensity.
Avoid letting the most vocal person dominate each rating: get individual scores first, then discuss divergences.
Variaciones
Run a 'Six Forces' variant by adding a sixth force: complementors (companies whose products increase the value of your own). Combine with Scenario Planning to model how each force shifts under different future scenarios.
Casos de uso
Preguntas frecuentes
¿Cuándo debo usar Porter's Five Forces?▾
Usa Porter's Five Forces cuando quieras: Market entry analysis; Competitive strategy workshops; Investment due diligence; Industry attractiveness assessment; Strategic planning off-sites.
¿Cuánto tiempo tarda Porter's Five Forces?▾
Porter's Five Forces normalmente dura entre 60 y 150 minutos.
¿Para cuántos participantes es Porter's Five Forces?▾
Porter's Five Forces funciona mejor para grupos de 3–20 participantes.
¿Qué materiales necesito para Porter's Five Forces?▾
Para realizar Porter's Five Forces necesitarás: Porter's Five Forces template (printed or projected), sticky notes, markers, industry reports or competitive intelligence (optional).
¿Qué tan difÃcil es facilitar Porter's Five Forces?â–¾
Porter's Five Forces está clasificado como intermedio — es útil tener algo de experiencia en facilitación.
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Probar gratisMethod descriptions on Workshop Weaver are original content written by our team, based on established facilitation practices. This method was inspired by work from Michael E. Porter, 'How Competitive Forces Shape Strategy', Harvard Business Review (1979).