The document outlines Porter's Five Forces analysis framework for assessing the competitive environment of an industry. It describes the five competitive forces as the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products/services, and rivalry among existing competitors. For each force, it lists factors that determine the intensity of competition and should be rated on a 1-5 scale, with the average rating indicating the overall intensity of the competitive force.
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
0 ratings0% found this document useful (0 votes)
79 views1 page
Porter's Five-Forces Analysis Matrix
The document outlines Porter's Five Forces analysis framework for assessing the competitive environment of an industry. It describes the five competitive forces as the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products/services, and rivalry among existing competitors. For each force, it lists factors that determine the intensity of competition and should be rated on a 1-5 scale, with the average rating indicating the overall intensity of the competitive force.
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 1
Porters Five-Forces Analysis Matrix
Forces and its factors Attractiveness rating
the stronger the forces, the less attractive the industry (the lower the profitability of industry participants) The threat of new entrants 1. Economies of scale Small 1-2-3-4-5 Large 2. Capital requirements Low 1-2-3-4-5 High 3. Customer loyalty and brand identification Weak 1-2-3-4-5 Strong 4. Access to distribution channels Easy 1-2-3-4-5 Difficult 5. Access to technology and know-how Easy 1-2-3-4-5 Difficult the average rating of the first force The bargaining power of buyers 1. Number of buyers Small 1-2-3-4-5 Big 2. Buyer switching costs to competing brands Low 1-2-3-4-5 High 3. Importance of producers brand reputation to a buyer Low 1-2-3-4-5 High 4. Threat of backward integration Credible 1-2-3-4-5 Impossible 5. Importance of the industry products to the quality Low 1-2-3-4-5 High of the buyers products (or consumption) the average rating of the second force The bargaining power of suppliers 1. Number of suppliers Small 1-2-3-4-5 Big 2. Producers switching costs to other suppliers High 1-2-3-4-5 Low 3. Suppliers products differentiation High 1-2-3-4-5 Low 4. Threat of forward integration Credible 1-2-3-4-5 Impossible 5. Importance of supplies to the quality of the industry products High 1-2-3-4-5 Low or services the average rating of the third force The threat of substitute products and services 1. Presence of substitute products Many 1-2-3-4-5 None 2. Accessibility of substitute products High 1-2-3-4-5 Low 3. Relative price of substitute products High 1-2-3-4-5 Low 4. Customers switching costs to substitute products Low 1-2-3-4-5 High 5. Intensity of substitute products promotion activities and market High 1-2-3-4-5 Low penetration the average rating of the forth force Rivalry among competitors in an industry 1. Number of competitors (industry consolidation) Big 1-2-3-4-5 Small 2. Industry growth Slow 1-2-3-4-5 Fast 3. Fixed cost High 1-2-3-4-5 Low 4. Product differentiation Weak 1-2-3-4-5 Strong 5. Exit barriers High 1-2-3-4-5 Low the average rating of the fifth force the average rating of all five forces