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"Porter five forces analysis is a framework for industry analysis and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit.
Three of Porter's five forces refer to competition from external sources. The remainder are internal threats.
Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a business unit to re-assess the marketplace given the overall change in industry information. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average. A clear example of this is the airline industry. As an industry, profitability is low and yet individual companies, by applying unique business models, have been able to make a return in excess of the industry average.
Porter's five forces include - three forces from 'horizontal' competition: the threat of substitute products or services, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers.
This five forces analysis, is just one part of the complete Porter strategic models. The other elements are the value chain and the generic strategies." [Porter five forces analysis. Wikipedia]
The block diagram example "Porter's five forces model" was created using the ConceptDraw PRO diagramming and vector drawing software extended with the Block Diagrams solution from the area "What is a Diagram" of ConceptDraw Solution Park.
Block diagram
Block diagram, block diagram,
"Failure analysis is the process of collecting and analyzing data to determine the cause of a failure. It is an important discipline in many branches of manufacturing industry, such as the electronics industry, where it is a vital tool used in the development of new products and for the improvement of existing products. There are many companies which provide services to find the cause of failure in products, devices and in post disaster situations. The failure analysis process relies on collecting failed components for subsequent examination of the cause or causes of failure using a wide array of methods, especially microscopy and spectroscopy. The NDT or nondestructive testing methods (such as Industrial computed tomography scanning) are valuable because the failed products are unaffected by analysis, so inspection always starts using these methods." [Failure analysis. Wikipedia]
The example "Audit failure - Fault tree analysis diagram" was created using the ConceptDraw PRO diagramming and vector drawing software extended with the Fault Tree Analysis Diagrams solution from the Engineering area of ConceptDraw Solution Park.
FTA diagram
FTA diagram, event, conditional event, basic event, basic initiating fault, failure event, OR gate, AND gate,
This circle-spoke diagram sample shows the Porter five forces model. It was designed on the base of the Wikimedia Commons file: Modelo Porter.png. [commons.wikimedia.org/ wiki/ File:Modelo_ Porter.png]
"Porter's five forces analysis is a framework that attempts to analyze the level of competition within an industry and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of an Industry. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit. This analysis is associated with its principal innovator Michael E. Porter of Harvard University. ...
Porter's five forces include – three forces from 'horizontal' competition: the threat of substitute products or services, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers." [Porter's five forces analysis. Wikipedia]
The hub-and-spoke diagram example "Porter five forces model" was created using the ConceptDraw PRO diagramming and vector drawing software extended with the Circle-Spoke Diagrams solution from the area "What is a Diagram" of ConceptDraw Solution Park.
Circle-spoke diagram
Circle-spoke diagram, circle-spoke diagram,
This SWOT matrix diagram example was created on the base of article "An Easy Way To Jumpstart Your Strategic Plan: SWOT" by Leslie Wolf from the website of the California Digital Library, the University of California. "Strategic planning doesn’t have to be a daunting and lengthy process. The goal is really a simple one: to help you understand your world and build a road map to guide your efforts. ...
This analysis tool can help you focus your attention on the specific success factors that are right for your team.
The tool is called a SWOT analysis. SWOT stands for Strengths and Weaknesses, Opportunities and Threats. Here’s what it means:
(1) Strengths are those positive internal attributes that strengthen your business or team. You can develop plans to capitalize on those strengths.
(2) Weaknesses are those negative internal attributes that are working against your success. You can shore up those weaknesses so they don’t stop your success.
(3) Opportunities are those external conditions that can have a positive effect on your goals. These opportunities can point you in the right direction.
(4) Threats are those external conditions that can have a negative effect on your goals. These threats will affect you less if you can identify and minimize them. ...
We thought it would be helpful to show you a sample SWOT analysis for a business you can easily visualize: a small independent bookstore in a university town. The store owner brought the team together to think about how the bookstore could survive during the continuing financial downturn. After an hour of brainstorming, this is the SWOT analysis they developed." [cdlib.org/ cdlinfo/ 2010/ 09/ 29/ an-easy-way-to-jumpstart-your-strategic-plan-swot/ ]
The matrix diagram example "SWOT analysis for a small independent bookstore" was created using the ConceptDraw PRO diagramming and vector drawing software extended with the SWOT Analysis solution from the Management area of ConceptDraw Solution Park.
SWOT matrix
SWOT matrix, SWOT analysis,