Michael Porter is a famous academic known for his theories on economics, business strategy, and competitive advantages. The great works has influenced the whole world, including Porter’s Five Forces Analysis, Competitive Strategy, National Diamond and Value Chain.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. As the same diagram PowerPoint template series, you can also find our Data Mining, Machine Learning, cloud computing, Artificial Intelligence and BlockChain PowerPoint templates.
Porter five forces model is a fantastic tool for analyzing competition of an industry. It studied the elements of an industry to present the degree of competition, healthy margin availability and attractiveness of entrance. The model has been widely used in many industries to demonstrate a complete market landscape to identify what could be done to benefit from the five forces.
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.
Slide 2, Porter’s five forces with explanation
- Profitable industries will definitely attract new investments, resulting in increasing of supply and reduce the margin in those industries.
- A substitute product means resolving the same problem with cost-effective way by advancing technologies.
- The bargaining power of customers is decided by how many suppliers in the market. If customers are easy to get what they want in the market, they will enjoy higher degree of bargaining power.
- The bargaining power of suppliers is subjected to the availability of the product in the market. Advanced or differentiated technology will enhance the bargaining power of suppliers.
- The intensity of competitive rivalry could be judged through the concentration degree of the TOP 5 suppliers or downstream end users. The more fierce competition of this industry, the lower produce price will be witnessed.
Slide 3, Potential factors of Porter five forces
At the same time you can also refer to the fully explanation of this great model in Wikipedia.