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

„If our fate is on the line, we know how to effectively change our routine.“ more >>

Jiří Střelec Jiří Střelec

How many times you have heard that people do not change. Yet they do, and we ourselves have changed. When we wanted our first computer, we got some seasonal job. When we wanted to win favour of a girl of our dreams, we were ready to memorize a poem or even to write one. As parents, we want and know how to protect our own children. For their smile is worth it. People who are interested in nothing and do not want to change are very few. Often enough, it is just that we do not know how to break an established routine. Managers sometimes do not know how to effect a change, or, as the case may be, are afraid the change they are going to effect might have some unpleasant repercussions. They do not feel like resolving unpleasant situations.

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