Competitive Forces Model (Porter's Five Forces)
  • Competitive Forces Model (Porter's Five Forces)
  • Competitive Forces Model (Porter's Five Forces)
Originally published: 27/06/2018 07:41
Publication number: ELQ-46986-1
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Competitive Forces Model (Porter's Five Forces)

This competitive forces model is a useful for analyzing the six forces affecting a company's competitive position.

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In the strategic planning process, external analysis plays an important role as it assesses a company's operating environment and identifies opportunities and threats for the company.

One of the crucial steps in an external analysis is to analyze the six competitive forces - intensity of industry rivalry, threat of potential entrants, bargaining power of buyers, bargaining power of suppliers, threat of substitute goods/services, and power of complementary goods/services. Using this competitive forces model, you can neatly outline the key elements of each of the six forces and have a clear picture of where a company is standing among its rivals.

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