Example Porter’s 5 Forces

Diagram of Porter’s 5 Forces

Diagram of Porter's 5 Forces

Diagram of Porter’s 5 Forces

The image is six boxes, top center box is green with the text:

Supplier concentration
Importance of volume to supplier
Differentiation of inputs
Impact of inputs on cost or differentiation
Switching costs of firms in the industry
Presence of substitute inputs
Threat of forward integration
Cost relative to total purchases in industry

Right middle box is purple with the text:

-Switching costs
-Buyer inclination to
trade-off of substitutes

Bottom right box has a white background, with the text:

-Exit barriers
-Industry concentration
-Fixed costs/Value added
-Industry growth
-Intermittent overcapacity
-Product differences
-Switching costs
-Brand identity
-Diversity of rivals
-Corporate stakes

The bottom center box is blue, with the text:

Bargaining leverage
Buyer volume
Buyer information
Brand identity
Price sensitivity
Threat of backward integration
Product differentiation
Buyer concentration vs. industry
Substitutes available
Buyers’ incentives

The left middle box is orange, with the text:

Absolute cost advantages
Proprietary learning curve
Access to inputs
Government policy
Economies of scale
Capital requirements
Brand identity
Switching costs
Access to distribution
Expected retaliation
Proprietary products

The center box has five arrows pointing to the text RIVALRY in the middle. The arrows are position at the top, bottom, right, left and bottom right corner. They are all pointing in from the corresponding text boxes.

The chart shows 5 boxes, one in the center laballed “Industry Competitors, Rivalry among exisiting firms”. There is a curved arrow pointing upwards in this certer box from Rivalry among exisiting firms to Industry Competitors. The other 4 boxes surround the center box as follows:The top box is labelled Potential entrants. An arrow labeled “Threat on new entrants” points to the center box.

The right box is labelled Buyers. An arrow labeled “Barganing power of buyers” points to the center box.

The bottom box is labelled Substitutes Compliments. An arrow labeled “Threat of substitute and compliment products” points to the center box.

The left box is labelled Suppliers. An arrow labeled “Barganing power of suppliers” points to the center box.

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