What are Porter's 5 forces and how their analysis helps us understand our position in the market
Posted: Mon Jan 06, 2025 8:05 am
By Astrid Ruiz
Marketing4eCommerce Editor
ANDPorter's 5 forces model is a very useful tool to include in your marketing plan that provides a framework for strategic reflection to verify the viability and profitability of a sector or project in the long term .
And in a time of crisis, changes in the market, entry of new competitors or launch of new projects, it is essential to carry out a market analysis and the tools that can be applied to new challenges. That is why in this post we want to tell you a little more about Porter's 5 forces and how to apply them in your business .
What are Porter's 5 forces?
Let’s start at the beginning. Porter’s 5 forces were created by engineer and Harvard Business School professor Michael Porter , and presented in his first book, “Competitive Strategy.”
This is a model that analyzes the level of competition within a sector or industry in order to develop a business strategy based on 5 forces :
The power of the customer
The power of the supplier
New entrants
The threat posed by substitute products
The nature of rivalry.
The first two correspond to vertical competition forces, bangladesh number data while the other three are horizontal competition forces. With this management tool, companies are able to analyze and measure their resources . From these forces, they can establish the optimal conditions to plan ideal strategies to enhance their opportunities or strengths against threats and weaknesses.
Although this model was developed in 1979, it is still very relevant and today, each executive or brand can adapt it to their specific situation and circumstances.
Marketing4eCommerce Editor
ANDPorter's 5 forces model is a very useful tool to include in your marketing plan that provides a framework for strategic reflection to verify the viability and profitability of a sector or project in the long term .
And in a time of crisis, changes in the market, entry of new competitors or launch of new projects, it is essential to carry out a market analysis and the tools that can be applied to new challenges. That is why in this post we want to tell you a little more about Porter's 5 forces and how to apply them in your business .
What are Porter's 5 forces?
Let’s start at the beginning. Porter’s 5 forces were created by engineer and Harvard Business School professor Michael Porter , and presented in his first book, “Competitive Strategy.”
This is a model that analyzes the level of competition within a sector or industry in order to develop a business strategy based on 5 forces :
The power of the customer
The power of the supplier
New entrants
The threat posed by substitute products
The nature of rivalry.
The first two correspond to vertical competition forces, bangladesh number data while the other three are horizontal competition forces. With this management tool, companies are able to analyze and measure their resources . From these forces, they can establish the optimal conditions to plan ideal strategies to enhance their opportunities or strengths against threats and weaknesses.
Although this model was developed in 1979, it is still very relevant and today, each executive or brand can adapt it to their specific situation and circumstances.