In this slideshow, I discuss the five forces model found by Michael E. Porter.

1. THE FIVE FORCES MODEL
BY MICHAEL E. PORTER
QUEENSBOROUGH COMMUNITY COLLEGE
CIS – 205 INTENSIVE WRITING COURSE
JEFFERY CHONG

2. THE FIVE FORCES
Rivalry
among
existing
competitors
Threat of
New
Entrants
Bargaining
power of
Buyers
Threat of
substitute
product or
services
Bargaining
power of
suppliers

3. Bargaining power of Buyers
• Bargaining power of Buyers is assessed by analyzing the ability of
buyers to directly impact the price they are willing to pay for an
item.
• It is high when buyers have many choices of whom to buy from and
low when they have fewer choices.

4. Bargaining Power of Suppliers
• Bargaining Power of Suppliers is assessed by the suppliers' ability
to directly impact the price they are charging for supplies
(including materials, labor, and services).
• It is high when buyers have a small number of choices to buy from
and low when they have many choices.
• It is also high when few good substitute raw materials are available
and cost of switching raw material suppliers is high.

5. Threat of Substitute Product or Services
• A substitute product is one that may offer the same or similar
benefits to a company as a product from another industry. The
threat of a substitute is the level of risk that a company faces from
replacement by its substitutes.
• It is high when there are many alternatives to a product or service
and low when there are few alternatives from which to choose.

6. Threat of New Entrants
• The threat of New Entrants affects the competitive environment
for the existing competitors and influences the ability of existing
firms to achieve profitability.
• It is high when it is easy for new competitors to enter a market and
low when there are significant entry barriers to entering a market.

7. Rivalry Among Existing Competitors
• It is high when competition is fierce in a market and low when
competition is more complacent.
• Although competition is always more intense in some industries
than in others, the overall trend is toward increased competition in
just about every industry

8. MICHAEL E. PORTER
Michael Eugene Porter is the Bishop
William Lawrence University
Professor atThe Institute for
Strategy and Competitiveness,
based at the Harvard Business
School.

9. Bibliography
• The Five Forces Model. (n.d.). Retrieved from
https://sites.google.com/site/qccdstein512/unit-1/chapter-2-identifying-competitive-
advantage
• Porter's five forces analysis. (n.d.). Retrieved from
https://en.wikipedia.org/wiki/Porter's_five_forces_analysis