A good refresh on this model!

Sahib Karim Khan's Blog

It was 1979 when a Harvard Business School’s professor Michael E. Porter developed Porter’s five forces analysis framework for industry analysis and business strategy development.

It may seem a little complex to many people, but we will try to understand it from a very different perspective, from a lay-man’s perspective 🙂

What are Porter’s 5 Forces?

To put it in the simple way Uncle Porter says that if you want to start a new business or analyze an existing one you must consider following 5 forces/factors in doing so:

  1. Threat of New Competition
  2. Threat of Substitute Product or Service
  3. Bargaining Power of Customers
  4. Bargaining Power of Suppliers
  5. Competitive Rivalry

A Lay-man’s Perspective – Example:

Okay enough business vocabulary; let’s understand the concept with an easy example. Assume that we want to start a business, say selling ice-cream on a cart (Thaelay wala). So what are the factors we…

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