Using Porter’s Five Forces Model for Competitive Analysis


Conduct analysis of the industry you want to play in to determine whether it’s attractive enough for you to enter

Identify the external factors that determine the profitability level of your potential industry

Shape your competitiveness by devising strategies to influence your external environment to your advantage

2 Hours

By the end of this guided project, you will be able to use the Porter’s Five Force model to determine the attractiveness and profitability potentials of your industry. The Five Forces is a model that was drawn from industrial organization economics to identify and describe the fundamental economic forces that shape every industry. The five forces are competition in the industry, potential of new entrants, power of suppliers, power of customers, and threat of substitute products. These forces determine the intensity of competition and hence the attractiveness and profitability of an industry. Essentially, awareness of the five forces can help you to understand the structure of your industry, and therefore stake a position is that less vulnerable For us to practically demonstrate how to use the framework to conduct analysis of an industry and make strategic decisions, we will analyze an energy services company as a case study. Example of the case study would empower you with the skillset to apply the model to your company or any other company of your choice. Porter’s Five Forces model can be used to determine the viability of a new business, or to evaluate growth potential for an existing business. The project is for strategist, business leader, and entrepreneurs that want to determine the competitiveness of their companies


  • Strategic Management

  • Leadership

  • Strategic Planning

  • Entrepreneurship



  1. Task 1: Introduction: By the end of this task, you will explain the Porter Five Forces Model

  2. Task 2: New Entrant: By the end of this task, you will express the threat of new entrant into your industry

  3. Task 3: Power of Suppliers: By the end of this task, you will determine the bargaining power of suppliers

  4. OPTIONAL Assessment

  5. Task 4: Power of Buyers: By the end of this task, you will identify the bargaining power of buyers

  6. Task 5: Threat of Substitute: By the end of this task, you will highlight the threat of substitute products

  7. Task 6 Competitive Rivalry: By the end of this task, you will express the competitive rivalry in your industry

  8. OPTIONAL Assessment

  9. Task 7: Strategic Approach: By the end of this task, you will set your strategic direction

  10. OPTIONAL Portfolio Activity





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