15-01-2026

PORTER 5 - Market Forces Analysis

PORTER 5 - Market Forces Analysis


Market Assessment

P5 is our tool for assessing the market forces plusses and minuses for your current market or before you venture into a new market.

This tool is setup like a questionnaire, through which it will pose questions to the users about market Industry forces, each question is a dimension of one of the five Industry Forces.

There are approximately forty questions. Answers are multiple choice ratings.

Once you finish rating all dimensions, the tool will produce your reports.

Version V1.0.0

Release Date Jan. 1, 2025

How does it work?

  1. You should only answer questions using numeric values: 1 to 9
  2. You need to answer all questions without closing the session window, because it is not possible to save your progress and continue later. If you close the session window before completing all of the questions, then you have to start again with another session.
  3. Read each question carefully and give your best estimate of the available options for answers.
The output files will be saved in a folder named "Analysis-date" the date is always the date that you run the tool. The folder will contain:
  1. A CSV file containg all your ratings
  2. A text file containing your ratings and some descriptive statistics for each of the industry forces.
  3. Five png files depicting each force on a bar chart with classification between favorable, and unfavorable industry forces.

Elements in the assessment

Buyer Power - Bargaining power of buyers
Buyer Price sensitivity, Buyer's switching costs, Size of each buyer's order, Buyer's ability to substitute, Buyer's information availability, Buyer volume (number of customers), Buyer's threat of backward integration,
Competitors - Rivalry among existing competitors
New Entrants, Barriers to exit, Number of Competitors, Rate of Industry growth, Diversity of Competitors, Informational complexity, Switching costs to the buyers, Brand identity and customer loyalty, Quality differences between competitors, Product differentiation between competitors products,
Suppliers - Uniqueness of supplier's products or services
Number of suppliers, Supplier concentration, Supplier's threat of forward integration, Cost of Switching suppliers on our business, Potential of your Business in backward integration, Availability of substitutes for the supplier's products, Supplier's contribution to quality or service of the industry products,
New Entrants - Threat of new entrants (i.e. businesses, organizations) to the market
Government policies, Capital requirements, Brand identity/loyalty, Product differentiation, Access to necessary inputs, Access to latest technology, Access to distribution channels, Experience and learning effects, Expected retaliation from existing players, Economies of scale - profitability of the Business,
Substitute Products Effect - Threat of customers substituting your products with other similar products
Switching costs, Buyer's propensity to substitute, Number of substitute products available, Relative price performance of substitutes, Perceived level of product differentiation, Substitute producer's profitability & aggressiveness,

Scales used

Easy-Hard:: ( Easy, Hard, Normal, Extremely Easy, Extremely Hard, )


Yes-No Scale:: ( A little, Moderate, Not at all, Not so much, Extremely so, )


Size Five Point:: ( Large, Small, Medium, Very Small, Extremely Large, )


Five Point Scale:: ( Low, high, Moderate, Very Low, Very High, )


Speed Five Point:: ( Fast, SLow, Moderate, Very Slow, Extremely Fast, )