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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,
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,
The vector stencils library "Packaging, loading, customs" contains 28 clipart images of packing materials and packaging equipment for drawing illustrations.
"Packaging is the technology of enclosing or protecting products for distribution, storage, sale, and use. Packaging also refers to the process of design, evaluation, and production of packages. Packaging can be described as a coordinated system of preparing goods for transport, warehousing, logistics, sale, and end use. Packaging contains, protects, preserves, transports, informs, and sells. In many countries it is fully integrated into government, business, institutional, industrial, and personal use." [Packaging and labeling. Wikipedia]
The clip art example "Packaging, loading, customs - Vector stencils library" was created in ConceptDraw PRO diagramming and vector drawing software using the Manufacturing and Maintenance solution from the Illustration area of ConceptDraw Solution Park.
Cardboard box
Cardboard box, cardboard, box,
Cardboard box (open)
Cardboard box (open), cardboard box,
Paper bag
Paper bag, paper bag,
Woodgrain barrel
Woodgrain barrel, woodgrain, barrel,
Barrel
Barrel, barrel, oil barrel,
Crate
Crate, crate,
Container
Container, container,
Handcart with cardboard box
Handcart with cardboard box, delivery, sack truck, hand truck cart,
Flatbed trolley
Flatbed trolley, cart,
Hand truck
Hand truck, cart,
Porter
Porter, porter,
Gantry crane
Gantry crane, gantry crane,
Jib crane
Jib crane, stationary crane,
Level luffing crane
Level luffing crane, harbour crane,
Deck crane
Deck crane, ship, crane,
Packaging
Packaging, packing,
Packaging machine
Packaging machine, packaging machine,
Packing conveyor
Packing conveyor, packing conveyor, conveyor,
Vacuum packaging machine
Vacuum packaging machine, vacuum packer,
State border sign
State border sign, border sign,
Border checkpoint
Border checkpoint, border, border point,
Customs sign
Customs sign, customs sign,
Border control
Border control, immigration,
Port of entry office
Port of entry office, customs office,
Customs officer
Customs officer, customs officer,
Stocker with cardboard boxes
Stocker with cardboard boxes, loading workman, warehouse worker,
Warehouse workers
Warehouse workers, loading workmen,
Pallet jack
Pallet jack, forklift cart, pallet truck,