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


MBA Brief offers accurate and concise definitions of MBA concepts, frameworks, methods and models.

We love to keep things really short, but provide links to learn more about your subject and to similar concepts.

© 2023 MBA Brief - Last updated: 21-3-2023  -  Privacy   |   Terms