Porter’s five forces template helps businesses assess direct and indirect competitors based on their strength. It also enables an accurate market analysis so new companies can make informed decisions about the audience they are planning to target.
What are Michael Porter’s five forces model?
The five forces analysis model is a valuable business strategy tool that was initially created and published in 1979 by Michael Porter, a Harvard Business School professor. Over the last decades, it has managed to increase in popularity, and up until today, it remains one of the most used business strategy tools out there.
As the name itself suggests, Porter’s five forces template is made up of five elements:
- The supplier power - an estimation of how easy it would be for suppliers to increase prices
- The buyer power - an estimate of how easy it would be for buyers to contribute to costs going down
- The competitive rivalry - an in-depth analysis of the number of competitors combined with their capabilities
- The threat of substitution - if a market contains products that can easily be substituted, customers can easily opt for those in the case of an increase in prices
- The threat of new entrants - when a market is profitable, it will attract new entrants; if existing business don’t have powerful barriers and systems against new entrants, profitability can be damaged severely
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Why is Porter’s five forces template useful?
- It helps companies to make informed decisions when it comes to entering a specific market.
- Businesses can easily understand the internal and external factors that can influence their profitability.
- Businesses will gain a deeper understanding of their competitors within a particular industry and come up with efficient strategies designed to boost profits.
Benefits of using Porter’s five forces template with Moqups
As an online collaboration platform, Moqups offers a set of features that can be integrated quickly into this template. If you and your team are doing remote work and you need to complete competitor-based research, Porter’s five forces analysis template can be a great place to start.
Moqups offers a ready-to-use template that is adjustable to ensure it fits your requirements. You can add interactive features such as comments, sticky notes, callouts, or annotations while sharing real-time collaboration with other team members.
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