Porter's 5 Forces
Updated: Nov 8
Oftentimes I see this associated with strategy. It's very important to understand that this is not a framework for strategy. The primary purpose of Michael Porter's legendary five forces is to determine the attractiveness of an industry. The framework is brilliant for identifying where the power in an industry resides. It is also a helpful tool when deciding whether or not to enter a certain industry, i.e. some are very attractive and others not. This tool is an "external analysis" tool. The company's strategy in part is formulated to respond to the conclusions in the five forces. Read More.