Today, I will be sharing with you my knowledge of one of the models -- the very popular Porter's five forces. In latter posts, I will also run you through other models. I will be sharing my own application of it on my own business.
Porter's five forces is a creation of Michael Porter, a Harvard Business School professor. It is a strategy framework for a company to analyse its industry and competition.
- Level of competition/rivalry within the industry,
- Threat of new companies entering the industry
- Bargaining/price-control power of the buyers/customers
- Bargaining/price-control power of the suppliers (of raw materials and inputs)
- Threat of other industries' products/services eating into the industry's market