Key Takeaways About Porter's Five Forces

This guide is designed to explain what Porter's Five Forces is and how it is used in the strategic analysis of a business. Here are some key takeaways about Porter's Five Forces:

• Porter's Five Forces is a framework used to understand the competitive forces that shape an industry.

• It was first published by Michael Porter in 1980 and has since gained widespread adoption in the consulting and finance industries because of its usefulness.

• The framework looks at an industry through five lenses: barriers to entry, buyer's bargaining power, threat of substitutes, supplier's bargaining power, and the overall level of rivalry and competition within the industry.

• In this guide, we will also look at the concept of industry lifecycle to better understand how this aids us in using Porter's Five Forces to better understand how industries compete.