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 best strategy can be expressed only in one sentence.“ more >>

Jiří Střelec Jiří Střelec

Strategy management mostly seeks and formulates using special tools (such as SWOT analysis, Porter's model, modeling, market research, etc.). Describes a lot of pages. Analyzing large volumes of data. Such preparation will have just working team! Connect to the strategy is necessary, however the whole company. Individual workers should have a strategy easy to understand and easy to put in their own words. Only in this way can be a good strategy to spread the company. This is the reason why management should strategy express in one sentence.

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