Framework
Strategy

Porter's Five Forces

Industry rivalry, suppliers, buyers, entrants, substitutes

Best for
assessing industry attractiveness
Time
1–2 hr
Difficulty
Intermediate
Porter's Five Forces diagramA central box for industry rivalry with four forces pressing in on it from above, below, left and right: threat of new entrants, bargaining power of suppliers, bargaining power of buyers, and threat of substitutes.Industry RivalryNew EnSuppliBuyersSubstiRivalr
Porter's Five Forces: rivalry at the centre, with entrants, suppliers, buyers and substitutes pressing in.
Example

Should we enter the EU productivity SaaS market?

Five forces assessment
  1. Competitive rivalry — HIGH: Notion, Linear, Coda already established
  2. Supplier power — LOW: cloud infra commoditized, talent pool growing
  3. Buyer power — HIGH: free-tier expected, low switching costs
  4. Threat of new entrants — MEDIUM: low capital, but brand takes years
  5. Threat of substitutes — HIGH: email + spreadsheets are still default

Porter's Five Forces applied to real companies

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