Using Porter’s Five Forces Model for Competitive Analysis from Coursera

By the end of this guided project, you will be able to use the Porter’s Five Force model to determine the attractiveness and profitability potentials of your industry. The Five Forces is a model that was drawn from industrial organization economics to identify and describe the fundamental economic forces that shape every industry. The five forces are competition in the industry, potential of new entrants, power of suppliers, power of customers, and threat of substitute products. These forces determine the intensity of competition and hence the attractiveness and profitability of an industry. Essentially, awareness of the five forces can help you to understand the structure of your industry, and therefore stake a position is that less vulnerable

For us to practically demonstrate how to use the framework to conduct analysis of an industry and make strategic decisions, we will analyze an energy services company as a case study. Example of the case study would empower you with the skillset to apply the model to your company or any other company of your choice. Porter’s Five Forces model can be used to determine the viability of a new business, or to evaluate growth potential for an existing business. The project is for strategist, business leader, and entrepreneurs that want to determine the competitiveness of their companies

What's inside

Syllabus

Project Overview

By the end of this guided project, you will be able to use the Porter’s Five Force model to determine the attractiveness and profitability potentials of your industry. The five forces are competition in the industry, potential of new entrants, power of suppliers, power of customers, and threat of substitute products. These forces determine the intensity of competition and hence the attractiveness and profitability of an industry. Essentially, awareness of the five forces can help you to understand the structure of your industry, and therefore stake a position is that less vulnerable

Good to know

Know what's good

, what to watch for

, and possible dealbreakers

Uses the Porter’s Five Force model, a standard for industry analysis

Taught by Omodiaogbe Samuel, who are recognized for their work in strategic analysis

Examines the Porter’s Five Force model, a highly relevant tool for evaluating industry competition

Develops analytical skills using the Porter’s Five Force model, a core skill for strategists

Case study format offers practical application of the Porter’s Five Force model

Requires learners to have some background in industry analysis

Activities

Be better prepared before your course. Deepen your understanding during and after it. Supplement your coursework and achieve mastery of the topics covered in Using Porter’s Five Forces Model for Competitive Analysis with these activities:

Review basic economics concepts

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Brushing up on basic economics concepts will provide a stronger foundation for understanding Porter's Five Forces.

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Review your notes from an economics course
Read a book or article on basic economics
Take a practice quiz on basic economics

Follow a tutorial on using Porter's Five Forces

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Following a tutorial will provide you with a structured approach to learning about Porter's Five Forces.

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Find a tutorial on Porter's Five Forces
Follow the steps in the tutorial
Apply what you have learned to your own strategy development

Discuss Porter's Five Forces with a peer

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Discussing Porter's Five Forces with a peer will help you understand the concept more deeply and identify new perspectives.

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Find a peer to discuss Porter's Five Forces with
Prepare for your discussion
Have your discussion

Five other activities

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Review 'Competitive Strategy: Techniques for Analyzing Industries and Competitors'

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This renowned work in the strategy field is the foundation for the analysis framework and will enhance your theoretical understanding in this course.

View Competitive Strategy: Techniques for Analyzing... on Amazon

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Read and summarize each chapter
Identify the five forces that shape your industry
Summarize the sources of the bargaining power

Solve practice problems on Porter's Five Forces

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Practice using the Porter's Five Forces framework through drills. This will enhance your analytical skills and reinforce the concepts.

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Find a set of practice problems
Solve the problems
Review your answers

Analyze an industry of your choice using Porter's Five Forces

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Use the framework taught in this course to analyze an industry of your choice. The practical application will solidify your understanding.

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Choose an industry that interests you
Gather data on the industry
Identify the five forces that shape the industry
Analyze the impact of each force on the industry
Write a report on your findings

Review 'Good Strategy/Bad Strategy'

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This book provides a practical guide to developing and evaluating strategies. It will complement the theoretical concepts covered in this course.

View The Crux: How Leaders Become Strategists on Amazon

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Read and summarize the key points
Identify the characteristics of good and bad strategies
Apply the concepts to your own strategy development

Create a presentation on Porter's Five Forces

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Creating a presentation will help you synthesize your knowledge of Porter's Five Forces and improve your communication skills.

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Gather your materials
Develop your outline
Create your slides
Practice your presentation
Deliver your presentation

Career center

Learners who complete Using Porter’s Five Forces Model for Competitive Analysis will develop knowledge and skills that may be useful to these careers:

Strategy Consultant

A Strategy Consultant helps businesses develop and implement strategic plans. This course may be useful for Strategy Consultants because it provides a framework for analyzing the competitive landscape of an industry and making strategic decisions based on insights gained from the analysis.

See salaries and explore the career path for Strategy Consultant

Product Manager

A Product Manager is responsible for the development and launch of new products. This course may be helpful for Product Managers because it provides a framework for evaluating the potential of new products and making decisions about which products to develop and launch.

See salaries and explore the career path for Product Manager

Market Researcher

A Market Researcher collects and analyzes data to understand consumer behavior. This course may be useful for Market Researchers because it provides a framework for analyzing the competitive landscape of an industry and gaining insights into the factors that affect consumer behavior.

See salaries and explore the career path for Market Researcher

Venture Capitalist

A Venture Capitalist invests in early-stage companies with high growth potential. This course may be helpful for Venture Capitalists because it provides a framework for evaluating the potential of new businesses and making decisions about which businesses to invest in.

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Management Consultant

A Management Consultant helps businesses improve their performance by providing objective advice and recommendations. This course may be useful for Management Consultants because it provides a framework for analyzing the competitive landscape of an industry and making strategic decisions based on insights gained from the analysis

See salaries and explore the career path for Management Consultant

Marketing Manager

A Marketing Manager develops and executes marketing campaigns to promote products or services. This course may be helpful for Marketing Managers because it provides insights into the competitive forces that shape consumer behavior and can help them develop more effective marketing strategies.

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Sales Manager

A Sales Manager is responsible for leading and motivating a sales team to achieve sales targets. This course may be helpful for Sales Managers because it provides insights into the competitive forces that affect consumer behavior and can help them develop more effective sales strategies.

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Business Development Manager

A Business Development Manager is responsible for identifying and developing new business opportunities. This course may be helpful for Business Development Managers because it provides insights into the competitive forces that shape the business environment and can help them identify and develop new opportunities.

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Portfolio Manager

A Portfolio Manager invests money on behalf of clients. This course may be useful for Portfolio Managers because it provides a framework for analyzing the competitive landscape of an industry and making decisions about which investments to make.

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Financial Analyst

A Financial Analyst researches and analyzes financial data to make informed investment decisions.

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Investment Banker

An Investment Banker advises companies on mergers and acquisitions, capital raising, and other financial transactions. This course may be useful for Investment Bankers because it provides a framework for analyzing the competitive landscape of an industry and making decisions about which companies to invest in.

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Investment Analyst

An Investment Analyst researches and analyzes investments for individuals and institutions. This course may be useful for Investment Analysts who want to gain a deeper understanding of the factors that affect the profitability of different industries.

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Economist

An Economist studies the production, distribution, and consumption of goods and services. This course may be useful for Economists who want to gain a deeper understanding of the factors that affect the profitability of different industries.

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Professor

A Professor teaches and conducts research at a college or university. This course may be useful for Professors who teach courses in business or economics, as it provides a framework for analyzing the competitive landscape of an industry and making strategic decisions based on insights gained from the analysis.

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Business Consultant

A Business Consultant helps businesses improve their performance by providing objective advice and recommendations. This course may be useful for Business Consultants because it provides a framework for analyzing the competitive landscape of an industry and making strategic decisions based on insights gained from the analysis.

See salaries and explore the career path for Business Consultant