Derived from Porter's Five Forces

Porter's Five Forces

Score the five competitive forces and watch the diagram show where the pressure on industry margins is coming from.

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When deciding whether an industry is worth entering or defending, before strategy is set.

What you need and what you get

You'll need

A view of the industry's buyers, suppliers, entrants and substitutes
Honest one-to-five judgements of each force

You'll get

A scored five forces diagram, downloadable as PNG or PowerPoint
An overall pressure verdict with the next move

Porter five forces: where the pressure on industry margins comes from

Competitive rivalry sits at the centre and the four outside forces press in on it. Each card carries its canonical prompts and, once scored, the pressure that force is exerting.

Score every force from one to five and read the shape: the cards showing strong or intense pressure are where margin is being squeezed and where strategy has to answer first.

Score each force and the diagram fills in as you go. The overall pressure and what it means for the industry appear here.