Porter's Five Forces Template - Miro

1. Supplier power. This force assesses how easy it is for suppliers to drive prices up. · 2. Buyer power. Next, you determine how easy it is for buyers to drive ... ←AlltemplatesCategoriesPorter'sFiveForcesTemplateDiscoverthebestmarketforyourproductwiththePorter'sFiveForcesTemplate.Thisbusinessframeworkhelpsyoutoevaluatethecompetitionanddevelopbetterstrategies.UsetemplateAboutPorter'sFiveForcesTemplateBusinessanalystsandstrategistsusethePorter’sFiveForcesTemplatetodeterminehowprofitableaproductorservicecanbeandwhatmarketsarethebestfitforthisparticularproduct.It’sawaytogainmarketinsightsandanalyzethecompetitivelandscape.KeepreadingtoknowhowtousePorter’sFiveForcesModel.WhatisthePorter’sFiveForcesTemplate?ThePorter’sFiveForcesTemplateiswhereyoucanmapPorter’sFiveForcessoyoucanevaluateyourcompany’scompetitiveness.Thisframework,alsoknownasPorter’sFiveForcesModel,breaksdownthecompetitionintofiveforces:1.SupplierpowerThisforceassesseshoweasyitisforsupplierstodrivepricesup.It’stypicallycompletedbydeterminingthenumberofsupplierswhocanofferthesamesupply,thecostofswitchingsuppliers,andanyuniqueaspectsofbenefitsthesuppliercanoffer.2.BuyerpowerNext,youdeterminehoweasyitisforbuyerstodrivepricesdown.Thisisdeterminedbythetotalnumberofbuyersyourbusinesshas,customeracquisitioncost,customerlifetimevalue,andotherfactorsthatmaygivethebuyer(customers)leveragetonegotiateforlowerpricesorgoelsewhere.3.RivalryamongexistingcompetitorsThemaindriversofthisforcearethenumberofandcapabilityofcompetitorsinthemarket.Morenumerousandpowerfulcompetitorswithalargermarketsharediminishthepowerofanysmallercompanyandgivebothcustomersandsuppliersmoreleverage(becauseoftheirabilitytogoelsewhere).4.Thethreatofsubstituteproducts/servicesWhenclosesubstituteproductsexistinamarket,itincreasesthelikelihoodofcustomersswitchingtoalternativeproductsinresponsetopriceincreases.5.ThethreatofnewentrantsProfitablemarketsattractnewentrants,whicherodesprofitability.Unlessincumbentshavestronganddurablebarrierstonewentrants,profitabilitywilldecline.Conversely,themoreuniqueyourproductisfromothercompetitors,thelessthreatnewentrantspose.WhyisPorter'sFiveForcesanalysisimportant?Porter’sFiveForcesforcesmodelishelpfulwhenanalyzingabusinessbecause:Itdeterminesthefactorsaffectingprofitability. CompletingthePorter’sFiveForcesTemplatehelpsunderstandthespecificfactorshinderinggrowthorprofitabilityandfindnewcompetitiveadvantages.Youcanmakebetterdecisionsonexpansionorcapacity. Ifyou’reconsideringexpandingyourbusinesssomehow,you’llwanttounderstandthecompetitiveforcesatplayandhowtheymayaffectyou.AFiveForcesanalysisprovidesorganizationswiththeinformationtomakegooddecisionsaboutenteringaspecificindustryorincreasingtheirmarketshare.Itinformsyouroverallstrategy. Whenyouunderstandwhatshapestheoverallmarketandwhatdeterminesprofitability,youcancraftastrategythatplaystothestrengthsofyourindustryandaccountsfortheweaknesses.HowtoUsePorter’s5ForcesTemplateThePorter’sFiveForcesTemplatemakesiteasytorunananalysisofyourbusiness.Selectthetemplateandfillthefivefieldswithstickynotes.Youcancolor-codethemtomakeiteasytoidentifytopicsataglance.Whenanalyzingeachforce,thinkaboutthequestionsbelow:Force1:ThreatsofNewEntrantsThinkabouttheamountofcompetitionyourcompanyfaces:thenumberofcompetitorsyouhaveandhowtheirproductsorservicescomparetoyours.Ifyourmarkethasfewcompetitors,thatcanseemattractive,butkeepinminditmightbeshort-lived.Ifyourmarketishighlycompetitive,thatcanseemunattractive,butitmightpushyoutoimproveyourproductsandpricing.Questionstoask:Howeasilycouldothersenteryourmarketandthreatenyourcompany’sposition? Whoareyournewcompetitors? Howmuchdoesitcosttoenteryourmarket? Whatarethebarrierstoentry? Isyourmarkettightlyregulated? Whatdoesittaketoscale?Force2:ThreatofSubstituteProduct/ServicesWhenyoumapoutsubstitutionthreats,analyzehowyourproducthasimpactedyourcustomers’lives.Astheirbehaviorchanges,seeifyoucanadaptyourproductaccordingly.Youmightbeabletoofferanewserviceoracheaperalternative.Questionstoask:Whatisthelikelihoodthatyourcustomerswillreplaceyourproductorservicewithadifferentone? Arethereanyviablesubstitutesonthemarket? Whatisthecostofswitchingtoareplacement?Force3:BargainingPowerofSuppliersIt’simportanttokeepinmindthatyoursupplierisabusinesstoo.Theyareperformingthesamestrategiccalculationsthatyouare.Ifyoursupplieroffersanicheservice,theycouldchargeyoumoreandimpactyourbottomline.Questionstoask:Whatwouldhappenifyoursuppliersincreasedtheirprices? Isthatlikelytohappen? Howeasilycouldyouswitchtoanalternativesupplier?Force4:BargainingPowerofBuyersYourbuyers’calculationscouldalsoseriouslyimpactyourbottomline,likeyoursupplier.Thesequestionshelpyoufigureouthowmuchleverageyourbuyershave.Evenifyourbuyersarenotbusinesses,it’simportanttotreatthemthatway.Theyarebusiness-savvy,oftenshoppingaroundtoseehowyourcompetitorsmeasureup.Questionstoask:Howmanybuyersdoyouhave? Couldyourbuyersswitchsuppliers? Howmanywouldneedtoswitchsupplierstoimpactyourbottomline? Howimportantisyourproductorservicetoyourbuyers?Force5:RivalryAmongExistingCompetitorsDrawoutyourcurrentcompetitivelandscape.Understandhowyourcompetitorsaresucceedingandwhythey’refailing.Manybusinessesmakethemistakeofonlyanalyzingwhatmakesthembetterthantheircompetition.Itiscrucialtounderstandwhatmakesyourcompetitionbetterthanyou.Behonest!It’stheonlywayyoucangetahead.Questionstoask:Whoareyourexistingcompetitors?Howstrongarethey? Howdotheirproductsorservicescomparetoyours? Whatsetsyourcompanyapart? Whatwoulditcostyourcustomertoswitchtoacompetitor?WhencompletingyourPorter’sFiveForcestemplate,youcaninviteyourteamtoworkinrealtimewithyouoraskfortheirfeedbackbysharingtheboardlink.FAQaboutthePorter'sFiveForcesModelWhatisthemainobjectiveofPorter'sFiveForcesModel?Porter’sFiveForcesisaframeworkthathelpsyouanalyzecompetitionandmakebetter-informeddecisionsonpenetratingorlaunchingaproductintothemarket.Itgivesyouinsightsintohowprofitableyourproductcanbebyanalyzingthecompetitivelandscape,lookingatthedirectcompetition,evaluatingconsumers’buyingpower,andcheckingsuppliers’bargainingpossibilities.WhenshouldyouusePorter'sFiveForcesframework?YoushouldusePorter’sfiveforcesframeworkwhenbuildingamarketingandbusinessstrategy,soyoudon’tmissanyinformationthatmightinfluenceyourbusinesssuccess.Meetings&WorkshopsWorkshopsStrategy&PlanningLeadershipResearch&DesignPorter'sFiveForcesTemplateGetstartedwiththistemplaterightnow.UsetemplateRelatedTemplatesUsetemplatePreviewMoreinfoClosepopupResearchTopicBrainstormTemplateWorksbestfor:DeskResearch,Brainstorming,IdeationComingupwithatopicforaresearchprojectcanbeadauntingtask.UsetheResearchTopicBrainstormtemplatetotakeageneralideaandtransformitintosomethingconcrete.WiththeResearchTopicBrainstormtemplate,youcancompilealistofgeneralideasthatinterestyouandthenbreakthemintocomponentparts.Youcanthenturnthosepartsintoquestionsthatmightbethefocusforaresearchproject.ResearchTopicBrainstormTemplateUsetemplatePreviewMoreinfoClosepopupAnsoffMatrixTemplateWorksbestfor:Leadership,Operations,StrategicPlanningKeepgrowing.Keepscaling.Keepfindingthosenewopportunitiesinnewmarkets—andcreativenewwaystoreachcustomersthere.Soundlikeyourapproach?Thenthistemplatemightbeagreatfit.AnAnsoffMatrix(aka,aproductormarketexpansiongrid)isbrokenintofourpotentialgrowthstrategies:MarketPenetration,MarketDevelopment,ProductDevelopment,andDiversification.Whenyougothrougheachsectionwithyourteam,you’llgetaclearviewofyouroptionsgoingforwardandthepotentialrisksandrewardsofeach.AnsoffMatrixTemplateUsetemplatePreviewMoreinfoClosepopupWhat'sonYourRadarTemplateWorksbestfor:BusinessManagement,Operations,StrategicPlanningDoyouoryourteamfeeloverburdenedbytasks?Havingtroublefocusingonparticularproblems?What’sonYourRadarisathoughtexerciseinwhichyouplotideasaccordingtotheirimportanceorrelevance.Designersandteamsusewhat’sonyourradartoensurethattheirideasarewithinthescopeofagivenproject.Theyalsorelyonthemethodtoassesswhetheragivensolutionislikelytosolvetheproblemathand.Butevenifyou’renotadesigner,themethodcanhelpassignprioritiesandgroundyourideasinreality.What'sonYourRadarTemplateUsetemplatePreviewMoreinfoClosepopupSupplyandDemandDiagramWorksbestfor:MarketResearch,Mapping,DiagramsHowdoyoupriceyourproductsothatyoumakeaprofitwhilekeepingcustomersandmanufacturershappy?Byfindingafairprice.Asupplyanddemanddiagramisagraphthatvisualizeshowmuchdemandthereisforyourproductandhowmanyproductsyouneed.This,inturn,helpsyouwithproductpricing.SupplyandDemandDiagramUsetemplatePreviewMoreinfoClosepopupSOARAnalysisTemplateWorksbestfor:Leadership,DecisionMaking,StrategicPlanningTheSOARAnalysistemplatepromptsyoutoconsideryourorganization’sstrengthsandpotentialtocreateasharedvisionofthefuture.TheSOARAnalysisisuniqueinthatitencouragesyoutofocusonthepositiveratherthansolelyidentifyingareasforgrowth.SOARstandsforStrengths,Opportunities,Aspirations,andResults.Tousethetemplate,examineeachcategorythroughapositivelens.PerformaSOARAnalysiswheneveryouwanttobringpeopletogetherandencourageaction.SOARAnalysisTemplateUsetemplatePreviewMoreinfoClosepopupThree-HourBrandSprintTemplateWorksbestfor:Marketing,Workshops,SprintPlanningBeforecustomerswillbelieveinyourbrand,yourteamhastobelieve.That’swherebrandsprintsworkwonders.PopularizedbytheteamatGoogleVentures,abrandsprintwillhelpyourteamsortthroughalldifferentideasaboutyourbrandandalignonyourbrand’sfundamentalbuildingblocks—yourvalues,audience,personality,missionstatement,roadmap,andmore.Whetheryou’rebuildinganewbrandorrevampinganexistingone,brandsprintsareidealfortriggereventssuchasnamingyourcompany,designingalogo,hiringanagency,orwritingamanifesto.Three-HourBrandSprintTemplate