Uncover the forces that shape your industry and gain a competitive edge with Porter's Five Forces framework.
This timeless model, developed by renowned strategist Michael E. Porter in 1979, still revolutionises businesses today.
Forget about traditional competitors for a moment. Porter's Five Forces goes beyond that and helps you tap into a new world of opportunities.
By identifying your industry's main sources of competition, you can fine-tune your strategy, boost profitability, and outsmart your toughest rivals.
This powerful tool will help you:
- Make informed decisions, identify areas for improvement, and position yourself as an unstoppable force in the market.
- Explore threats from substitute products or services, established rivals, and newcomers.
- Dive into vertical challenges like bargaining power with suppliers and customers alike.
In this article, I'll guide you through a workshop process you can run with a group to help you complete Porter's Five Forces framework and dissect your organization's strengths and weaknesses.
Step 1: Choose your market
Jot your chosen market down on a vibrant Post-it note and place it right in the center of the table. Draw Porter's 5 Forces around it.
Step 2: Describe the current situation
Split into smaller groups, each assigned to tackle one force head-on. Hand each group their Force Description (included in this download)
Give each group a few minutes to read their card and for the people to think silently to themselves.
What does the current situation look like for this specific area? Write down all insights on Post-it notes, placing them within their corresponding force.
Step 3: Share & build consensus
Come together as a whole group again and share what you've uncovered.
Together, evaluate which Post-it notes capture the essence of our current reality best. Achieve a unified understanding.
After reaching consensus, you now have an overview of the current market situation using the 5 Porter forces framework.
Conclusion
Well, there you have it. A simple workshop to help you sneak an edge over your competition.
Remember, you don't need to have the best product in the market or be part of a long-established business to be successful. Especially at the start.
Get a deep understanding of your competitive landscape and opportunities will appear. Guaranteed.
Good luck!