Porter’s Five Forces is a strategic tool used to analyse the level of competition in an industry and assess how attractive a market is. Developed by Harvard, Professor Michael E. Porter, it helps businesses understand the key forces that shape their competitive environment.
The five forces are:
- Industry rivalry – competition among existing businesses.
- New entrants – the threat of new companies entering the market.
- Supplier power – how much influence suppliers have over pricing and availability.
- Buyer power – how much influence customers have over pricing and quality.
- Substitutes – the risk of customers switching to alternative products or services.
Understanding these forces helps businesses spot risks and opportunities, and develop strategies to remain competitive.
Where to find Information for a Five Forces analysis
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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.
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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.
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Statista This link opens in a new windowAn online statistics, market research and business intelligence portal providing access to statistics, industry reports, and market outlooks from a range of private and government institutions.
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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.
Find related books
Check the UNSW Library collection for books that discuss Porter's Five Forces.
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