Consulting framework: Porter’s 5 Forces

« Five Forces » Market Analysis

  • Barriers to entry
    • Economies of scale, capital costs, cost advantage of existing competitors, barriers to exit, patents
  • Market Rivalry
    • Number and size of competitors, industry growth rate, product differentiation factors, industry margins/pricing
  • Buyer power
    • Significance of purchase relative to cost structure, switching costs, purchase volume, threat of backward integration
  • Supplier power
    • Number and size of suppliers switching costs/product differentiation, availability of substitutes, possibility of forward integration
  • Substitutes
    • Relative price/value of substitute compared to industry’s product, cost of switching to substitute, buyers’ propensity to switch

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s