Five Forces Analysis Example: Business Startup


This is a Five Forces Analysis example for a business. It identifies the five important factors that drive the competitive position of the business within the market, which includes: Competition, New Entrants, Buyer, Suppliers and Substitutes. Visual Paradigm Online supports an easy-to-use Five Forces Analysis tool. You can easily develop a Five Forces model by entering the items under an InfoArt shape.

What is Five Forces Analysis?

Developed by Michael Porter, the Five Forces Model (or sometimes known as Five Forces Analysis) is a powerful competitive analysis tool businesses use to identify the five important factors that drive a firm's competitive position within an industry, which includes: Competition, New Entrants, Buyer, Suppliers and Substitutes. By thinking through how each force affects you, and by identifying the strength and direction of each force, you can quickly assess the strength of the position and your ability to make a sustained profit in the industry.

How to Perform Five Forces Analysis?

You can perform Five Forces Analysis easily with Visual Paradigm Online. Here are several quick steps:

  1. Create a Five Forces Analysis diagram.
  2. Drag the Five Forces model from palette onto the canvas.
  3. Identify the threats of new entrants, competitive rivalry, buyer power, supplier power and threat of substitution and list them in the corresponding compartments.
  4. Once your diagram is complete, you can save it (File > Save as) to our cloud repository for future access. You can also export your work into image (JPG, PNG, PDF, SVG, etc) and share it with your co-workers.

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