"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.
Block diagram
Marketing
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).
Marketing Diagrams
This solution extends ConceptDraw PRO with samples, templates and library of design elements for drawing the marketing diagrams.
Marketing Charts
The vector stencils library "Marketing diagrams" contains 9 templates of marketing and sales diagrams and charts.
Use these shapes to illustrate your marketing and sales documents, presentations, infographics and webpages in the ConceptDraw PRO diagramming and vector drawing software extended with the Marketing Diagrams solution from the Marketing area of ConceptDraw Solution Park.
www.conceptdraw.com/ solution-park/ marketing-diagrams
Use these shapes to illustrate your marketing and sales documents, presentations, infographics and webpages in the ConceptDraw PRO diagramming and vector drawing software extended with the Marketing Diagrams solution from the Marketing area of ConceptDraw Solution Park.
www.conceptdraw.com/ solution-park/ marketing-diagrams
Service-goods continuum diagram
Diffusion of Innovations
Relationship ladder of customer loyalty
Leaky bucket diagram
Normal distribution
Product life cycle graph
Extended product life cycle graph
Five forces model
Six markets model
Step chart block
Step diagram block
Marketing Area
The solutions from Marketing area of ConceptDraw Solution Park collect templates, samples and libraries of vector stencils for drawing the marketing diagrams and mind maps.
Block Diagrams
Block diagrams solution extends ConceptDraw PRO software with templates, samples and libraries of vector stencils for drawing the block diagrams.
The vector stencils library "Marketing diagrams" contains 9 templates of marketing and sales diagrams and charts.
Use these shapes to illustrate your marketing and sales documents, presentations, infographics and webpages in the ConceptDraw PRO diagramming and vector drawing software extended with the Marketing Diagrams solution from the Marketing area of ConceptDraw Solution Park.
www.conceptdraw.com/ solution-park/ marketing-diagrams
Use these shapes to illustrate your marketing and sales documents, presentations, infographics and webpages in the ConceptDraw PRO diagramming and vector drawing software extended with the Marketing Diagrams solution from the Marketing area of ConceptDraw Solution Park.
www.conceptdraw.com/ solution-park/ marketing-diagrams
Service-goods continuum diagram
Diffusion of Innovations
Relationship ladder of customer loyalty
Leaky bucket diagram
Normal distribution
Product life cycle graph
Extended product life cycle graph
Five forces model
Six markets model
Step chart block
Step diagram block
The vector stencils library "Industrial transport" contains 11 clip art images for creating heavy-duty vehicles illustrations, presentation slides, infographics and webpages using the ConceptDraw PRO diagramming and vector drawing software.
"Heavy equipment refers to heavy-duty vehicles, specially designed for executing construction tasks, most frequently ones involving earthwork operations. They are also known as, heavy machines, heavy trucks, construction equipment, engineering equipment, heavy vehicles, or heavy hydraulics. They usually comprise five equipment systems: implement, traction, structure, power train, control and information. Heavy equipment functions through the mechanical advantage of a simple machine, the ratio between input force applied and force exerted is multiplied. Currently most equipment use hydraulic drives as a primary source of motion." [Heavy equipment. Wikipedia]
The vector stencils library "Industrial transport" is included in the Aerospace and Transport solution from the Illustrations area of ConceptDraw Solution Park.
www.conceptdraw.com/ solution-park/ illustrations-aerospace-transport
"Heavy equipment refers to heavy-duty vehicles, specially designed for executing construction tasks, most frequently ones involving earthwork operations. They are also known as, heavy machines, heavy trucks, construction equipment, engineering equipment, heavy vehicles, or heavy hydraulics. They usually comprise five equipment systems: implement, traction, structure, power train, control and information. Heavy equipment functions through the mechanical advantage of a simple machine, the ratio between input force applied and force exerted is multiplied. Currently most equipment use hydraulic drives as a primary source of motion." [Heavy equipment. Wikipedia]
The vector stencils library "Industrial transport" is included in the Aerospace and Transport solution from the Illustrations area of ConceptDraw Solution Park.
www.conceptdraw.com/ solution-park/ illustrations-aerospace-transport
Dump truck
Concrete mixer
Truck crane
Excavator
Bulldozer
Grain harvester combine
Tractor
Forklift truck
Reach stacker
Forklift truck
Container loader
25 Typical Orgcharts
The 25 Typical Orgcharts solution contains powerful organizational structure and organizational management drawing tools, a variety of professionally designed organization chart and matrix organization structure samples, 25 templates based on various orga
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