Porter’s Five Forces is a strategic analysis framework developed by Michael E. Porter to evaluate the competitive forces within an industry and determine its profitability and attractiveness.

It assesses five critical forces that shape competition: the threat of new entrants, the bargaining power of suppliers, the bargaining power of buyers, the threat of substitute products or services, and industry rivalry. Businesses use the tool to identify strengths, weaknesses, and opportunities in their market, providing a clear understanding of the competitive landscape.

When should you use it with your mentoring client?

Porter’s Five Forces is typically used during strategic planning, market analysis, or business mentorship when a company needs to evaluate its position within an industry. It is particularly valuable for new businesses entering a market, businesses expanding into new sectors, or established companies facing changing market dynamics.

Mentors often recommend using the tool to anticipate shifts in the competitive environment, assess new opportunities, or develop strategies to mitigate risks. This analysis is also used during mergers, acquisitions, or partnerships to gauge market dynamics and identify competitive advantages.

Download the below PDF for more information about this business mentoring tool and a client template.