This article is one part of a series on successfully utilizing marketing frameworks. To start from the beginning, click here.
Marketing Framework #3: Porter's Five Forces
While most marketing frameworks focus on the product itself and the audience, Porter’s Five Forces looks at the outside influences that can affect profitability. These include:
- Supplier Power: how many other suppliers exist, what makes them different, and how much their product costs.
- Buyer Power: which is the customer’s ability to influence decisions made by the company.
- Threat of Substitution: which is how your product compares to others on the market.
- Threat of New Entry: which is any barriers you might experience when entering the market.
- Competitive Rivalry: which is any other outside forces that affect how your product compares to the competition.
This model will help determine just how competitive your business environment is.
