Porter’s model PowerPoint

What is the porter’s model for?

The strategic porter’s model of five competitive forces’ analysis was described by Michael Porter in 1979. Michael Porter, using five structural units that are specific to each industry, described ways of forming a competitive advantage and long-term goods’ profitability, as well as the ways in which the company can maintain its profitability and remain competitive in the long run. The goal of strategy development is to adapt to a competitive environment.

The description of the model

The competition theory of Michael Porter states that on the market there are five driving forces that determine the possible level of profit. In Michael Porter’s model, a separate level of product’s competitiveness is assigned to each power:

• market power of consumers;
• market power of suppliers;
• threat of new participants’ entrance;
• level of competition or intra-industry competition;
• threat of the appearance of substitute goods.

Michael Porter believed that these five elements are the driving forces of market competition, what is reflected in the name of the model – the model of the five competitive Porter’s forces.

Practical use

Michael porter five forces model ppt analysis of the industry helps to determine the severity and intensity of competitive forces within the industry, to find a position in which the company will be able to exert influence on competitive forces and will be maximally protected from them.

There is the golden rule of the theory of the Michael porter five forces, which states the following: the company has more opportunities to obtain a high profit in the industry if the influence of Porter’s competitive forces is weaker. Vice versa, no company can ensure high profitability from investment if the influence of these five competitive forces is higher. The most influential competitive forces determine the average profitability of the industry.

5 competitive forces

1. Threat of new participants’ entrance. Why are new players dangerous? Usually, new participants bring new production capacities, new technologies, new resources to the market, what can be a shock to the industry, change consumer behavior, set new standards for existing players. The strength of the influence of new players depends on the entrance barriers of the industry and the speed of influence of existing market players.

2. Market power of consumers. According to porter’s model, consumers can influence the competitiveness of a company’s products on the market, as in fact they are consumers of the finished product and ensure the existence of the market by satisfying their needs. When developing the strategy, the company should choose those buyers who are the least influential on the market.

3. Market power of suppliers. Suppliers can influence the competitiveness of a company’s products on the market, as they own resources for the production of goods in the industry. Rising prices for raw materials and making deals on unfavorable for the company conditions leads to an increase in the cost of finished products, an increase in production costs.

4. Threat of the appearance of substitute goods. These goods limit the market potential in terms of price growth. Usually, substitute products influence the establishment of the upper limit of market prices, which, in the face of rising costs of production and raw materials, reduces the profitability of companies. The most effective method of fighting against substitute products is building a strong brand.

5. Intra-industry competition. Competition among existing companies boils down to the desire to improve their position on the market, to win market consumers by all means. Intensive competition leads to price competition, increased costs for goods’ promotion, sometimes improving the quality of products. All this reduces the profitability of the industry.

What is the porter 5 forces template for?

As you understand this model is necessary for each company that wants to succeed on the market. Analyzing the development prospects, each leader is obliged to make Porter’s analysis. Nowadays, all meetings and seminars are held with the support of visual aid that simplifies the process of perception and perfectly visualizes all necessary aspects of the question. Therefore, on this site we offer a wide range of multipurpose high-quality elements and premade professional templates for your presentations. On this page, a full pack of our Porter’s model slides is represented.

This template is designed for PowerPoint software. It is supported by its different versions. The template is comprised of 30 professional unique slides. It is possible to choose one of 7 available colors. The composition of the template represents different types of Porter’s model. On the sample, you can see creative elements or more schematic ones. Some of them are made in the form of the tables or charts, the others include illustrations and other visual tools. Each slide has a unique design what allows you to choose the most appropriate slide.

The advantages of the template

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5. Visualization tools. The purpose of these slides is to visualize the results of porters five force model ppt analysis and present it in an attractive visual form. The use of visualization elements adds vividness to the presentation as well as converts complex information into clear schemes and charts. You can be sure that information will be better perceived and the listeners won’t get bored of monotonous text massifs. Porter 5 forces template is a full pack of such visual elements designed to help at work.

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