The Impact of Different Forces on a Market
A true classic in the world of business models, Porter’s Five Forces is a great tool to analyse a market.
The model is designed to show the impact of different forces on a market for a product or products, with opposite boxes closely related to each other.
You work through each box, considering the impact of competitors, then the strength of customers and suppliers. Many markets will be driven by customers, who hold all the power, but sometimes there are suppliers that determine your success. Equally customers could choose competitor products, or alternative products, and the market could change with the entry of new companies.
