Five Forces focus on the awareness of five competitive forces, which can help companies stake out superior competitive positions.
Assess the major factors impacting an industry’s profit potential.
Process
- Define the relevant industry by both its product scope and geographic scope
- Identify the players constituting each of the five forces
- Assess the underlying drivers of each force
- Step back and assess the overall industry structure
- Analyze recent and likely future changes for each force
- How can a firm position itself in relation to the five forces?