"Porter five forces analysis is a framework for industry analysis and business strategy development. It draws upon industrial organization (IO) economics to derive five forces that determine the competitive intensity and therefore attractiveness of a market. Attractiveness in this context refers to the overall industry profitability. An "unattractive" industry is one in which the combination of these five forces acts to drive down overall profitability. A very unattractive industry would be one approaching "pure competition", in which available profits for all firms are driven to normal profit.
Three of Porter's five forces refer to competition from external sources. The remainder are internal threats.
Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a business unit to re-assess the marketplace given the overall change in industry information. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average. A clear example of this is the airline industry. As an industry, profitability is low and yet individual companies, by applying unique business models, have been able to make a return in excess of the industry average.
Porter's five forces include - three forces from 'horizontal' competition: the threat of substitute products or services, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers.
This five forces analysis, is just one part of the complete Porter strategic models. The other elements are the value chain and the generic strategies." [Porter five forces analysis. Wikipedia]
The block diagram example "Porter's five forces model" was created using the ConceptDraw PRO diagramming and vector drawing software extended with the Block Diagrams solution from the area "What is a Diagram" of ConceptDraw Solution Park.
Three of Porter's five forces refer to competition from external sources. The remainder are internal threats.
Porter referred to these forces as the micro environment, to contrast it with the more general term macro environment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a business unit to re-assess the marketplace given the overall change in industry information. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability. Firms are able to apply their core competencies, business model or network to achieve a profit above the industry average. A clear example of this is the airline industry. As an industry, profitability is low and yet individual companies, by applying unique business models, have been able to make a return in excess of the industry average.
Porter's five forces include - three forces from 'horizontal' competition: the threat of substitute products or services, the threat of established rivals, and the threat of new entrants; and two forces from 'vertical' competition: the bargaining power of suppliers and the bargaining power of customers.
This five forces analysis, is just one part of the complete Porter strategic models. The other elements are the value chain and the generic strategies." [Porter five forces analysis. Wikipedia]
The block diagram example "Porter's five forces model" was created using the ConceptDraw PRO diagramming and vector drawing software extended with the Block Diagrams solution from the area "What is a Diagram" of ConceptDraw Solution Park.
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Competitor analysis is a first and obligatory step in elaboration the proper corporate marketing strategy and creating sustainable competitive advantage. Use powerful opportunities of numerous solutions from ConceptDraw Solution Park for designing illustrative diagrams, charts, matrices which are necessary for effective competitor analysis.
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This solution extends ConceptDraw PRO with samples, templates and library of design elements for drawing the marketing diagrams.
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You need design the Functional Block Diagram and dream to find the useful tools to draw it easier, quickly and effectively? ConceptDraw PRO offers the Block Diagrams Solution from the "What is a Diagram" Area which will help you!
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Examples of subject areas that are well suited to this approach are marketing, business, products promotion, process modeling, market, resource, time, and cost analysis. Circle-Spoke Diagrams are successfully used in presentations, conferences, management documents, magazines, reportages, reviews, reports, TV, and social media.
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This solution extends ConceptDraw PRO v9 and ConceptDraw MINDMAP v7 with Marketing Diagrams and Mind Maps (brainstorming, preparing and holding meetings and presentations, sales calls).
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Flow Chart is a great visualization tool for the flow of a process, algorithm or procedure with a lot of benefits. It is convenient to use a powerful software for creating flow charts. Now we have the best flow chart maker online design software - ConceptDraw PRO enhanced with Flowcharts Solution from the "What is a Diagram" Area of ConceptDraw Solution Park.Blank Scatter Plot
This sample shows the Scatter Plot without missing categories. It’s very important to no miss the data, because this can have the grave negative consequences. The data on the Scatter Chart are represented as points with two values of variables in the Cartesian coordinates. This sample can be used in the engineering, business, statistics, analytics, at the creating the financial and other types of reports.Percentage Spider Chart
ConceptDraw PRO creates drawings, diagrams and charts with great visual appeal in Mac OS X.This sample shows the Spider Chart that represents the buyer perceptions of the leather footwear industries in Brazil, India and Italy.
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