Porter’s Five Forces Framework

Download our free Porter’s Five Forces template today (completed example below)!

Porter's Five Forces framework, developed in 1979 by Michael Porter of Harvard Business School, is a cornerstone concept in strategic business analysis enabling business owners and entrepreneurs to evaluate the intensity of competition within their chosen industry and identify current opportunities and threats. The framework considers five critical aspects: the threat of new entrants, the bargaining power of suppliers, the bargaining power of customers, the threat of substitute products or services, and the intensity of competitive rivalry.

By exploring these dimensions, business owners and entrepreneurs can gain insights into critical market dynamics and make informed strategic decisions to help establish competitive advantage.

Review our detailed Porter’s Five Forces guide for small businesses for step-by-step guidance on properly completing and implementing this framework.

Diagram of Porter's Five Forces with descriptions associated with each force

If your business is struggling to define Porter’s Five Forces, our team can help. Schedule a discovery session today to understand how our affordable expertise can assist your business. Whether you have the occasional question or require more comprehensive guidance, we offer a range of options to meet your needs.

Completed Porter’s Five Forces Example

The example below shows a completed Five Forces framework for a fine-dining Italian restaurant. The business has one location, so the analysis only examines the local market for this company. This framework highlights key market characteristics to give leadership a deeper understanding of how competitive the local industry is and which areas the company can attempt to leverage to establish a competitive advantage.

Click on the image below to download the completed example.

A completed Porter's Five Forces framework that analyzes the market conditions for an Italian fine dining restaurant