Tuesday, January 27, 2009

Michael E Porter's five forces of competitive position

1 Existing competitive rivalry between suppliers

2 Threat of new market entrants

3 Bargaining power of buyers

4 Power of suppliers

5 Threat of substitute products (including technology change)

Porter's Five Forces model can be used to good analytical effect alongside other models such as the SWOT and PEST analysis tools.
Porter's Five Forces model provides suggested points under each main heading, by which you can develop a broad and sophisticated analysis of competitive position, as might be used when creating strategy, plans, or making investment decisions about a business or organization.

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