Porter’s 5 Forces: Know Them in Detail to Analyze Your Competition and Better Guide Your Business

Porter’s 5 forces are part of a competitive analysis model created by Michael Porter in 1979 in the Harvard Business Review, which consists of considering 5 “forces” that can determine the position of any company in its respective market. porter’s 5 forces. No matter what your branch of activity is, discovering relevant information about your competitors and how they affect the market is vital to surviving. This contributes to quality management, especially when the analysis of the competition is carried out on the basis of proven techniques. Using already recognized methods is the safest way to improve processes and guarantee results. In the case of evaluating your competitors, few principles can be as useful as Porter’s 5 Forces.

What Are Porter’s 5 Forces?

Porter’s 5 forces are part of a competitive analysis model created by. The man who bears his name, michael porter, professor of strategy. And competitiveness at harvard business school. If you’ve never heard of this analytics model before, don’t. Be fooled into thinking it’s new: this accountant email list concept was introduced to the world in a 1979. Harvard business review article. Since then, many companies have used. This methodology, which consists of considering 5 “Forces” that, according to porter. Can determine the position of any company in its respective market. The idea behind choosing these forces was that they never change. Unlike more volatile factors such as growth rates in a given industry. Government intervention, and even technological change.

Each of Porter’s 5 Forces

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We already have a basic notion of what the 5 forces are and how they can help you in the competitive analysis of a company, but you have to go beyond the basics to apply that technique. Thinking about that, let’s understand at once how Porter’s 5 forces work. Based on this, you will have the best conditions to develop your analysis, without leaving any element aside:1. Rivalry CG Leads between competitors. The first force is the rivalry that exists between competitors, that is, what is the degree of existing competition. Some markets are not very competitive, but this may indicate that the demand is not as high or that the product is becoming obsolete (which will be determined by analyzing the fourth force).

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