Porter’s 5 Forces Analysis model helps marketers and business managers look at the “balance of power” in a market among different companies and analyze the attractiveness and potential profitability of a business sector.

Michael Porter is the founder of the field of modern strategy. He is one of the most influential thinkers on the planet about management and competitiveness. And one of the best economists in world history.

Professor at Bishop William Lawrence University at Harvard, he is the author of 19 books and more than 130 articles, as well as director of the Harvard Institute for Strategy and Competitiveness

The Benefits Of Porter’s Five Forces?

Generally, this model is one of the ones with the most significant advantages since it can be applied to many areas. Its main benefit, however, is that it allows companies to anticipate and influence the competition. In addition, it also collects the origins of profitability and studies the market as a whole.

Companies have the tools to carry out strategies that benefit them within the field of competition and thus maintain a healthy internal structure. At the same time, the competition is very high since there are several companies in the market, and the client has a lot of information at their fingertips

  • In addition, this analysis gives much more than numbers and theory about what is done right or wrong. It offers accurate guidelines to know what forces are driving or limiting the actual profitability of the organization, as well as the response produced by the changes we have included.
  • Once we have studied Porter’s 5 Forces Analysis forces, we can implement a strategic marketing plan to be more competitive. In addition, it will allow us to measure competitiveness in a sector and assess whether our company is prepared to enter it.

What are Porter’s Five Forces?

Porter’s five forces model can be instrumental for any company to improve and Especially. It helps when implementing a marketing plan and launching a business

Bargaining Power With Suppliers

The bargaining power of suppliers occurs when demand is much higher than supply. As there are many raw materials, suppliers can increase the final product’s price. Even so, their bargaining power lies in other aspects, such as the fact that the exchange of raw materials has a high cost

Bargaining Power Of Customers

Bargaining Power Of Customers

This force examines consumer power and its effect on prices and quality. Porter believes that the more organized consumers are, the more demands. And conditions they will impose on the relationship of costs, quality, or services. Therefore, the company will have less margin, and the market will be less attractive.

This Force You Will Be Able To Apply Strategies Of:

  • Increase investment in marketing and advertising
  • Improve sales channels
  • Increase the quality of the product and service or reduce its price
  • Provide new added value


Implementing a good marketing strategy is vital for your company to position itself among the first in the sector. If you want to become a specialized to develop the best marketing strategies