Porter’s industry structure analysis: how attractive is an industry? Five forces act on the rivalry at the centre – the bargaining power of suppliers and buyers, and the threat from new entrants and substitutes. Assess each force, collect its drivers – and then carry the results over into the SWOT analysis (opportunities & threats).
Pick a step – or switch on guided mode above and an assistant will walk you through. Step 5 shows how the results feed into the SWOT.
All the terms from the video – in plain language – and how the tool assesses and calculates. Click a question to open the answer.
The Five Forces model (industry structure analysis) by Michael Porter is a tool of strategic management for analysing a company’s external environment and determining the attractiveness of an industry – because that is shaped by the market structure.
At the centre is the rivalry within the industry. Four outer forces act on it: the bargaining power of suppliers, the bargaining power of buyers, the threat of new entrants and the threat of substitutes. The stronger these forces, the lower the profitability – and with it the attractiveness of the industry.
The results are ideal external inputs for the SWOT analysis: strong forces usually become threats there, protective factors (e.g. high entry barriers) become opportunities. In this way the SWOT builds directly on the Five Forces analysis.
This HTML file is your document. Everything you enter ends up in exactly this file when you save – just like a Word document. If you pass the file on, all analyses are included.
Save (green button or Ctrl+S) saves the current state – without any prompt. As long as no working file of your own has been created, the state is kept in the browser and will be back the next time you open it.
Save as (under “Analyses”) creates a file on your hard drive. This is the only place where you are asked where to save. After that, every further Save writes silently to exactly that file.
The first time: open the file, click “Analyses” and then Save as. From then on the green button is enough.
Saved automatically: once an analysis has been saved, the tool backs up every further change by itself after a few seconds.
If something goes wrong: the tool continuously keeps an interim state in the browser. If the browser crashes or you close the window by mistake, your work will be back the next time you open it.
Note on browsers: writing directly to the file currently works in Chrome and Edge. In Firefox and Safari everything stays saved in the browser – the file itself remains unchanged.