Five Forces

Definition: Five Forces is an outside-in business strategy tool by Michael Porter that is used to make an analysis of the attractiveness (value) of an industry structure.
Though a FF Analysis 5 fundamental market forces are analyzed: potential entrants, substitues, buyers, suppliers and competitors. Government can be considered as the 6th force.
A danger with FF is to neglect the own strengths and weaknesses.
This can be compensated by using the Core Competence model.

💡

Learn more about Five Forces.

More on external environment: Cultural Dimensions, External Environment, PEST Analysis, Specific Environment, Strategic Drift.

MBA Brief provides concise yet precise definitions of organizational concepts, management methods, and business models as taught in an MBA program.

We keep it short and provide links to high-quality websites where you can learn more about your topic.

Add MBA Brief to your desktop / iPad