Porter’s five forces template


The Porter’s five forces Template in PowerPoint format include three slides. Firstly we have Porter five forces template. Secondly we present Porter five forces with explanation. Michael Porter is a famous academic with great works of Porter’s Five Forces Analysis, Competitive Strategy, National Diamond and Value Chain. As the same diagram PowerPoint template series, you can also find our Data Mining, Machine Learning, cloud computing, Artificial Intelligence and BlockChain PowerPoint templates.

Understanding Porter’s Five Forces and its Impact on Business Strategy


In the world of business, staying ahead of the competition is vital for long-term success. To achieve this, organizations must have a deep understanding of the competitive forces that shape their industry. One widely-used framework for analyzing industry dynamics is Porter’s Five Forces. Developed by renowned strategist Michael E. Porter, this framework helps businesses assess the attractiveness and profitability of an industry, identify potential threats, and formulate effective strategies to gain a competitive advantage. In this blog post, we will explore the concept of Porter’s Five Forces and its significance in business strategy.

Slide 1, Porter’s five forces template

Porter five forces analyzed the competition from the perspective of horizontal and vertical. The horizontal includes three forces, which are the threat of substitute products or services, the threat of established rivals, and the threat of new entrants. While the vertical covers the bargaining power of suppliers and the bargaining power of customers.

porter's five forces

Threat of New Entrants:

The first force in Porter’s framework is the threat of new entrants. This force determines how easy or difficult it is for new competitors to enter the market. Factors such as barriers to entry, economies of scale, and brand loyalty play a crucial role in assessing this threat. Industries with high barriers to entry, such as the airline industry, are less prone to new entrants. Understanding this force helps businesses anticipate potential competition and take necessary steps to fortify their market position.

Bargaining Power of Suppliers:

The second force focuses on the bargaining power of suppliers. Suppliers who have a strong position can dictate terms, prices, and quality standards, which can impact a company’s profitability. Assessing the power of suppliers helps businesses identify potential risks, such as supply disruptions or price fluctuations, and develop strategies to mitigate them. For example, companies can establish strong supplier relationships, diversify their supplier base, or vertically integrate to reduce dependence on external suppliers.


Slide 2, Porter’s five forces with explanation

porter's five forces

Bargaining Power of Buyers:

The third force in Porter’s framework is the bargaining power of buyers. This force examines the influence customers have on the industry. Buyers with significant bargaining power can demand lower prices, better quality, or additional services, thereby reducing a company’s profitability. Understanding customer preferences, analyzing their switching costs, and offering unique value propositions can help businesses maintain a favorable position in the face of strong buyer power.

Threat of Substitute Products or Services:

The fourth force focuses on the threat of substitute products or services. This force determines how easily customers can switch to alternatives. Technological advancements and changing consumer preferences make it crucial for businesses to stay vigilant and continuously innovate to avoid being replaced by substitute offerings. By understanding this force, companies can invest in research and development, build strong brand loyalty, and differentiate their products or services to reduce the threat of substitutes.

Intensity of Competitive Rivalry of Porter’s five forces:

The final force in Porter’s framework is the intensity of competitive rivalry within the industry. This force measures the level of competition among existing firms. Factors such as market saturation, industry growth rate, and exit barriers influence the intensity of rivalry. Businesses need to monitor and adapt to competitive pressures, differentiate their offerings, and focus on building sustainable competitive advantages to thrive in highly competitive markets.

Slide 3, Potential factors of Porters five forces

At the same time you can also refer to the fully explanation of this great model in Wikipedia.

porters five forces


Porter’s Five Forces framework provides a comprehensive analysis of the competitive forces that shape an industry. By understanding these forces, businesses can make informed decisions, identify areas of opportunity, and develop effective strategies to gain a competitive edge. It is important to regularly assess the changing dynamics of these forces to stay ahead of the competition and adapt to industry disruptions. By incorporating Porter’s Five Forces analysis into their strategic planning process, businesses can navigate the complexities of their industry, mitigate risks, and position themselves for long-term success.

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