How do you know whether you’re going to be successful or not with a new business or product?
Well, you’ll probably look to pour your heart and soul into it. You’ll work hard to make it the best product or service you can. You’ll endeavor to make each and every customer happy.
And well done to you for that.
But you’re not the only one who impacts on whether your efforts are successful.
It’s no secret that one of the hardest parts of business is the competitive nature of the market.
What your competition looks like, how it’s constructed, and what opportunities their weaknesses provide you, are crucial factors which can determine your success.
This is where you’ll need to do some kind of competitive position analysis.
In this Process Street article, we’ll look at a framework which is designed to help you understand your competition called Porter’s Five Forces. We’ll cover:
- What is Porter’s Five Forces Model?
- Porter’s Five Forces – Force 1: Threat of new entrants
- Porter’s Five Forces – Force 2: Threat of substitutes
- Porter’s Five Forces – Force 3: Bargaining power of customers
- Porter’s Five Forces – Force 4: Bargaining power of suppliers
- Porter’s Five Forces – Force 5: Competitive rivalry
- Resolving the 5 Forces: An Economic Moat