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Entrepreneurial Small Business Management: Porter's Five Forces

Use this guide to find industry and market data to effectively conceptualize, launch, and manage a small business.

What is Porter's Five Forces framework?

Porter's Five Forces framework is a method of analysis applied to the competition of a business. It is used to examine the forces of competition that might be asserted on a specific business and helps determine to what degree a business might be profitable. Read, watch, and listen below for more information. 

Porter's Five Forces include: 

1. Competition in the industry

2. Potential of new entrants into the industry

3. Power of suppliers

4. Power of customers

5. Threat of substitute products

Smart art - Porter's Five Forces

Graphic representation of Porter's Five Forces model

Mind Tools Content Team. Porter’s Five Forces [Online image]. Mind Tools. https://www.mindtools.com/pages/article/newTMC_08.htm

Introduction to Porter's Five Forces

What can you learn from your competition?