Porter's model

publication date 07.08.2012

Porter's model is a method designed to evaluate the pressures acting on the company from the market environment. It assesses the pressure, rivalry and interaction of competitors, suppliers, customers and substitutes. The result of their combined effect is finding profit potential.

Model assesses five basic forces:

  1. the risk of entry of potential competitors
  2. rivalry among existing competitors
  3. contractual power of buyers
  4. contractual power of suppliers
  5. threat of substitute products

For more information see the Methods section - Porter's model.

Advisor ideas

„Creating new and beneficial things is better than finding out who is right.“ more >>

Jiří Střelec Jiří Střelec

More often than not we are drawn into disputes and collision situations. Every time we would like the culprit is someone else, with us being right. Thus, we spend lots of time seeking the truth or rather defending ourselves. Finding the culprit and the cause of the crisis situation makes sense especially with a subsequent improvement in mind.