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.



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


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