Strategy field notes

Porter's Five Forces, made usable.

Porter's Five Forces is a way to examine the competitive pressure around an industry. This guide explains each force, what to look for, and how to turn observations into a better strategic question.

Abstract diagram representing Porter's Five Forces

Five lenses

Read the pressure around a market.

Each note isolates one force. Use the set together; one attractive signal rarely settles the whole analysis.

Abstract competing shapes representing competitive rivalry

01 · Competitive rivalry

How intensely do existing firms compete?

Look at concentration, differentiation, switching costs and the structure of competition between firms.

Read rivalry notes →
Abstract doorway representing the threat of new entrants

02 · New entrants

What makes entry difficult or easy?

Examine capital, regulation, distribution, scale economies and the responses an incumbent can make.

Read entrant notes →
Abstract connected nodes representing supplier bargaining power

03 · Supplier power

Who controls important inputs?

Map concentration, uniqueness, switching costs and the possibility of taking an activity in-house.

Read supplier notes →
Abstract balance representing buyer bargaining power

04 · Buyer power

How much leverage do customers have?

Consider buyer concentration, price sensitivity, information and the cost of changing provider.

Read buyer notes →
Abstract branching paths representing substitute products

05 · Substitutes

What solves the same problem another way?

Substitutes are not only direct rivals. They can be different products, processes or choices serving the same need.

Read substitute notes →

A practical starting point

Describe the mechanism before scoring it.

Begin with observable structure: who supplies, who buys, what can change, and where value leaks away. A written explanation is usually more useful than a decorative high-medium-low chart.