“Create a Porter's Five Forces diagram with bargaining power of suppliers, bargaining power of buyers, competitive rivalry, threat of substitutes, and threat of new entrants pointing to a target industry.”
Read the decisions behind it.
Define the market boundary before analysis.
Assess each pressure independently.
Support each force with customer, supplier, and competitor facts.
Use this basic diagram to introduce the framework before applying it to a specific market.
Other examples in this family.
Common questions
Who created Five Forces?
Michael Porter introduced the framework as a way to analyze industry structure and competitive pressure.
Are competitors the only force?
No. Rivalry is one force; suppliers, buyers, substitutes, and new entrants can also affect industry pressure.
Can a company use the framework for one product?
Yes, if the product's market boundary and alternatives are defined clearly enough to assess the five forces.