Porter's Five Forces
A framework for analyzing industry competition through five key forces that shape profitability.
Also known as: Five Forces, Porter's model, Industry analysis
Category: Frameworks
Tags: strategies, frameworks, businesses, analysis, competition
Explanation
Porter's Five Forces, developed by Michael Porter, analyzes industry structure through: (1) Competitive rivalry—intensity of competition among existing players; (2) Threat of new entrants—how easy it is for newcomers to enter; (3) Bargaining power of suppliers—how much suppliers can dictate terms; (4) Bargaining power of buyers—how much customers can demand; (5) Threat of substitutes—availability of alternative solutions. Industries with weak forces are more profitable; strong forces erode margins. The framework helps choose which industries to enter and how to position within them. For creators, it might analyze: how crowded is your niche (rivalry), how hard is it to start (entry barriers), platform dependencies (supplier power), audience options (buyer power), and alternative formats (substitutes).
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