# Porter's Five Forces Analysis Worksheet

## Overview
Porter's Five Forces is a framework for analyzing the competitive forces that shape every industry and market. It helps identify where power lies in a business situation and understand both the strength of your current competitive position and the strength of a position you're considering moving into.

## The Five Forces

### 1. Threat of New Entrants

**Questions to Consider:**
- How easy or difficult is it for new competitors to enter your market?
- What are the barriers to entry in your industry?
- How much capital is required to start competing?
- Are there regulatory requirements or licenses needed?
- Do existing players have strong brand loyalty?
- Are there economies of scale advantages?

**Assessment (Rate 1-5: 1=Low threat, 5=High threat):** ___

**Key Factors:**
- [ ] Capital requirements: _________________________
- [ ] Access to distribution channels: _________________________
- [ ] Economies of scale: _________________________
- [ ] Brand loyalty: _________________________
- [ ] Government regulations: _________________________
- [ ] Proprietary technology/patents: _________________________

**Notes:**
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### 2. Bargaining Power of Suppliers

**Questions to Consider:**
- How many suppliers are available?
- How unique is the product/service they provide?
- How expensive would it be to switch suppliers?
- Can suppliers forward integrate into your business?
- How critical is their input to your product/service?

**Assessment (Rate 1-5: 1=Low power, 5=High power):** ___

**Key Factors:**
- [ ] Number of suppliers: _________________________
- [ ] Uniqueness of product/service: _________________________
- [ ] Switching costs: _________________________
- [ ] Supplier concentration: _________________________
- [ ] Availability of substitutes: _________________________
- [ ] Importance to your business: _________________________

**Major Suppliers:**
1. _________________________
2. _________________________
3. _________________________

### 3. Bargaining Power of Buyers

**Questions to Consider:**
- How many buyers are there?
- How big are their orders?
- How price sensitive are they?
- How easy is it for them to switch to competitors?
- Can they backward integrate?
- How much information do they have?

**Assessment (Rate 1-5: 1=Low power, 5=High power):** ___

**Key Factors:**
- [ ] Buyer concentration: _________________________
- [ ] Order volumes: _________________________
- [ ] Price sensitivity: _________________________
- [ ] Switching costs: _________________________
- [ ] Product differentiation: _________________________
- [ ] Buyer information: _________________________

**Major Customer Segments:**
1. _________________________
2. _________________________
3. _________________________

### 4. Threat of Substitute Products or Services

**Questions to Consider:**
- How many substitute products exist?
- How attractive are their prices?
- How is their quality compared to yours?
- What is the cost of switching for customers?
- What is the likelihood of customers switching?

**Assessment (Rate 1-5: 1=Low threat, 5=High threat):** ___

**Key Substitutes:**
1. _________________________
2. _________________________
3. _________________________

**Comparison Matrix:**
| Factor | Your Product | Substitute 1 | Substitute 2 |
|--------|--------------|--------------|--------------|
| Price | | | |
| Quality | | | |
| Features | | | |
| Availability | | | |
| Switching Cost | | | |

### 5. Competitive Rivalry

**Questions to Consider:**
- How many competitors are there?
- How are they positioned relative to you?
- Is the industry growing or shrinking?
- What are the exit barriers?
- How differentiated are products/services?
- What is the cost structure like?

**Assessment (Rate 1-5: 1=Low rivalry, 5=High rivalry):** ___

**Major Competitors:**
1. _________________________ (Market share: ___%)
2. _________________________ (Market share: ___%)
3. _________________________ (Market share: ___%)

**Competitive Factors:**
- [ ] Industry growth rate: _________________________
- [ ] Fixed costs: _________________________
- [ ] Product differentiation: _________________________
- [ ] Exit barriers: _________________________
- [ ] Capacity increments: _________________________
- [ ] Diversity of competitors: _________________________

## Summary Analysis

### Force Ratings Overview
| Force | Rating (1-5) | Key Insight |
|-------|--------------|-------------|
| New Entrants | ___ | |
| Supplier Power | ___ | |
| Buyer Power | ___ | |
| Substitutes | ___ | |
| Rivalry | ___ | |
| **Overall Industry Attractiveness** | ___ | |

### Strategic Implications

**Most Significant Threats:**
1. _________________________________________________________________
2. _________________________________________________________________
3. _________________________________________________________________

**Greatest Opportunities:**
1. _________________________________________________________________
2. _________________________________________________________________
3. _________________________________________________________________

## Action Items

### Immediate Actions (0-3 months)
- [ ] _________________________________________________________________
- [ ] _________________________________________________________________
- [ ] _________________________________________________________________

### Short-term Actions (3-6 months)
- [ ] _________________________________________________________________
- [ ] _________________________________________________________________
- [ ] _________________________________________________________________

### Long-term Strategic Initiatives (6+ months)
- [ ] _________________________________________________________________
- [ ] _________________________________________________________________
- [ ] _________________________________________________________________

## Additional Notes
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## Example Application

**Industry:** Online Streaming Services

**New Entrants (3/5):** Moderate threat due to high content costs but low technical barriers
**Supplier Power (4/5):** High - content creators have significant leverage
**Buyer Power (3/5):** Moderate - many alternatives but switching costs exist
**Substitutes (4/5):** High - traditional TV, gaming, social media compete for time
**Rivalry (5/5):** Intense - Netflix, Disney+, HBO Max, etc. compete aggressively

**Strategic Response:** Focus on exclusive content, improve user experience, and consider bundling strategies to increase switching costs.

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*Date Completed:* _____________
*Completed By:* _____________
*Next Review Date:* _____________