Five Forces Analysis Example: Buying a Farm


Let's assume you are deciding to switch careers and start a farming business - you have always loved nature and staying at the countryside, and want to switch to a career where you are your own boss. You create the following Five Forces Analysis as you think the situation through.

This diagram can be modified using Visual Paradigm Online, our online programming software. You can Click Use this Template to start editing this example, or click Create Blank to make yours.

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.

Keen to try VP Online?

No limitations, no obligations, no cancellation fees.

Start a Free Trial