Michael E. Porter Five Forces: Free PowerPoint Template

Michael E. Porter Five Forces: PowerPoint Template

Michael E. Porter Five Forces: Free PowerPoint Template

Porter's Five Forces is a powerful and simple tool to understand the business’s environment, competition level and thereby the attractiveness of a business or industry in terms of its profitability.

The tool is useful to understand both the strength of the business's current competitive position and the position the business inspires to move in to.

Porter's Five Forces are threat of new entrants, threat of substitute products / services, bargaining power of suppliers, bargaining power of buyers (customers) and competitive rivalry.

Threat of New Entrants

  • Barriers to entry
  • Economies of scale
  • Capital requirements
  • Product differentiation / Brand equity

Threat of Substitutes

  • Buyer potential to substitute
  • Number of substitute products / services
  • Performance of substitutes
  • Cost of change

Bargaining Power of Suppliers

  • Suppliers concentration / Number of suppliers
  • Uniqueness of products / services
  • Ability to substitute
  • Supplier switching costs

Bargaining Power of Buyers

  • Buyer concentration / Number of customers
  • Buyer switching costs
  • Price sensitivity
  • Differential advantage

Competitive Rivalry

  • Number of competitors / Firm concentration ratio
  • Customer loyalty
  • Requirements for advertising expenses
  • Quality differences / Competitive advantage through innovation

The slide is typically used in:

  • business plans
  • strategy plans
  • marketing plans
  • M&A investor decks
  • corporate presentations

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