Porter's 5 Forces explained
What is Porter's 5 Forces?
Porter's 5 Forces was developed by Harvard professor Michael E. Porter. The framework is a model that identifies and analyses five competitive forces that shape every industry and helps determine an industry's weaknesses and strengths.
The number and power of a company's competitive rivals, potential new market entrants, suppliers, customers, and substitute products influence a company's profitability.
Finding information for a Porter's 5 Forces analysis
- IBISWorld (Australian content) This link opens in a new windowIBISWorld research is closely aligned with the Porter's 5 Forces model. The industry reports provide analysis and insight into the threats and opportunities within an industry.
- MarketLine advantage This link opens in a new windowSelect Industry Profiles from the All Research dropdown menu.
Search for an industry e.g. automotive manufacturing.
Check the Table of Contents of the industry report for a Five Forces Analysis section.
Note: There is not a ready-made Five Forces Analysis available for every industry. If you can't find one, consider searching for a related industry and evaluate whether or not the same factors apply to the industry you're researching. - Passport GMID (Global market information database) This link opens in a new windowProvides market intelligence on industries, consumers and countries. The Economies tab at the top of the Passport homepage provides background information on each country e.g. ease of doing business, government stability etc.
- Gartner This link opens in a new windowUse when researching the adoption of information technology within or across industries. Industries include Education, Energy and Utilities, Financial, Banking, Insurance, investment services, government, healthcare providers, manufacturing, media and retail.
- UNSW Library collectionFind eBooks that discuss Porter's Five Forces by searching for the phrase with quotation marks "five forces" or "competitive strategy" in the Library collection. Refine your results by Resource Types and select eBooks.
PORTER'S 5 FORCES
"The state of competition in an industry depends on five basic competitive forces" - Michael E. Porter
