Five Forces Analysis Example: Five Forces Analysis Template


Porter's Five Forces is a model of industry competition. It is a tool used to analyze the competitive environment in terms of five key forces that affect a company's profitability and influence its strategy as shown in the following template.

Visual Paradigm Online has many Five Forces Analysis examples and templates for you to edit and modify. Try making your own by clicking Create Blank, or Click Use this Template to start editing this template.

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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