8421bit/niopd-skills/niopd-st-porters-five-forces

Porter's Five Forces Analysis Skill

This skill applies Porter's Five Forces framework to systematically analyze industry structure and competitive dynamics.

Theoretical Foundation

Origin

Porter's Five Forces was developed by Michael Porter (Harvard Business School) in "Competitive Strategy" (1979). It remains the foundational framework for industry analysis.

The Five Forces

flowchart TD
    NE[New Entrants] -->|Threat| IR[Industry Rivalry]
    S[Suppliers] -->|Power| IR
    B[Buyers] -->|Power| IR
    SU[Substitutes] -->|Threat| IR

Industry Attractiveness

• High barriers, weak forces = Attractive (high profits)
• Low barriers, strong forces = Unattractive (low profits)

When to Use

• Market entry decisions
• Competitive strategy development
• Investment analysis
• Industry understanding
• Strategic positioning

Instructions

Step 1: Define Industry Boundaries

• What industry are we analyzing?
• What are the industry boundaries?
• What's the geographic scope?

Step 2: Analyze Each Force

For each of the five forces:

Rate: High / Medium / Low Key Factors: [Specific drivers] Evidence: [Data supporting rating] Implications: [Strategic meaning]

Step 3: Assess Industry Rivalry

• Number and diversity of competitors
• Industry growth rate
• Exit barriers
• Product differentiation
• Switching costs

Step 4: Assess Buyer Power

• Buyer concentration
• Volume per buyer
• Switching costs
• Price sensitivity
• Backward integration threat

Step 5: Assess Supplier Power

• Supplier concentration
• Input differentiation
• Switching costs
• Forward integration threat
• Importance of volume

Step 6: Assess New Entrant Threat

• Capital requirements
• Economies of scale
• Brand loyalty
• Government regulation
• Access to distribution

Step 7: Assess Substitute Threat

• Substitute availability
• Relative price/performance
• Switching costs
• Buyer propensity to switch

Step 8: Generate Report

File path: 02-reports/[YYYYMMDD]-five-forces-v0.md

Summary Table:

Output Specifications

• File Naming: [YYYYMMDD]-five-forces-v0.md
• Location: 02-reports/
• Template: references/porters-five-forces-template.md

Related Skills

• niopd-st-swot: Strategic assessment
• niopd-mr-competitor: Competitor analysis
• niopd-bs-market-opportunity: Market sizing
• niopd-dt-scenarios: Future scenarios