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

„The system only works provided that the management makes its part.“ more >>

Jiří Střelec Jiří Střelec

Every management system generates results and a more effective performance only if it includes everybody and everybody uses it properly. If the management regards the system only as a pro forma profit-making tool for the workers, the system is never going to work as it should.