Porter's Five Forces

Michael Porter's framework for analyzing the structural attractiveness of an industry. Reveals where profit pools form, why some markets are chronically unprofitable, and where strategic positioning has leverage.

When to use this skill

• Market entry decision (which industry to play in)
• Diagnosing chronic margin pressure (why are we squeezed?)
• Strategic positioning (where to invest, where to defend)
• Competitive response planning
• M&A target evaluation (industry attractiveness)
• Pre-fundraise industry framing

The 5 forces