Porter's Five Forces
Originally published: 26/02/2020 14:49
Publication number: ELQ-44525-1
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Porter's Five Forces

Porter's Five Forces is a useful tool to evaluate the competitiveness of an organization with respect to its rivals.

Description
Dr. Michael Porter, known as the father of Modern Strategy, is well known for his framework, Porter’s Five Forces. Porter's Five Forces is a useful tool to evaluate the competitiveness of an organization with respect to its rivals. For the existence of an enterprise it is important to know its competition and how their product / service offerings and marketing strategies affect the market.

This presentation provides a detailed overview of Porter’s Five Forces model and the 5 critical elements that constitute the model:

1. Threat of New Entrants
2. Supplier Power
3. Buyer Power
4. Threat of Substitution
5. Internal Rivalry

Intense rivalry results from:
1. Numerous or equally balanced competitors
2. Slow industry growth
3. High fixed or storage costs
4. Lack of differentiation or switching costs
5. Capacity augmented in large increments
6. Diverse competitors
8. High strategic stakes
9. High exit barriers


The presentation then deliberates on the most critical barriers to market entry, the ever-changing market conditions affecting the entry barriers, and supplier & buyer power dynamics. Knowledge of the sources of competition provides the foundation for an organization’s strategic plans.

The slide deck also includes some slide templates for you to use in your own business presentations.

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