Industry Analysis: Porter’s Five Forces

Overview

How to judge how attractive an industry is using Porter’s Five Forces, the framework for weighing competition, new entrants, substitutes, suppliers and buyers.

Key takeaways

• A company is only as strong as the industry it competes in.
• Porter’s Five Forces breaks competition into five measurable pressures.
• They cover existing rivals, new entrants, substitutes, suppliers and buyers.
• The best businesses tend to sit in industries with weaker competitive forces.

For education only. Not investment advice.