MBA Schools love to educate us on various tools of thought or approach but over time many are proven wrong, not-quite-right, or just another management fad.
One that looks like it may go the distance, equally at home applied to existing businesses or new ventures – Porter’s 5 Forces.
Understanding Business Opportunity Porter’s 5 Forces
Porters 5 Forces model breaks down the attractiveness of a market to five categories- threat of new competition, threat of substitute products or services, bargaining power of customers, bargaining power of suppliers and intensity of competitive rivalry.
The following diagram illustrates it best: