Porters Five-Forces Analysis Matrix

Forces and its factors Attractiveness rating

the stronger the forces, the less attractive the industry
(the lower the profitability of industry participants)
The threat of new entrants
1. Economies of scale Small 1-2-3-4-5 Large
2. Capital requirements Low 1-2-3-4-5 High
3. Customer loyalty and brand identification Weak 1-2-3-4-5 Strong
4. Access to distribution channels Easy 1-2-3-4-5 Difficult
5. Access to technology and know-how Easy 1-2-3-4-5 Difficult
the average rating of the first force
The bargaining power of buyers
1. Number of buyers Small 1-2-3-4-5 Big
2. Buyer switching costs to competing brands Low 1-2-3-4-5 High
3. Importance of producers brand reputation to a buyer Low 1-2-3-4-5 High
4. Threat of backward integration Credible 1-2-3-4-5 Impossible
5. Importance of the industry products to the quality Low 1-2-3-4-5 High
of the buyers products (or consumption)
the average rating of the second force
The bargaining power of suppliers
1. Number of suppliers Small 1-2-3-4-5 Big
2. Producers switching costs to other suppliers High 1-2-3-4-5 Low
3. Suppliers products differentiation High 1-2-3-4-5 Low
4. Threat of forward integration Credible 1-2-3-4-5 Impossible
5. Importance of supplies to the quality of the industry products High 1-2-3-4-5 Low
or services
the average rating of the third force
The threat of substitute products and services
1. Presence of substitute products Many 1-2-3-4-5 None
2. Accessibility of substitute products High 1-2-3-4-5 Low
3. Relative price of substitute products High 1-2-3-4-5 Low
4. Customers switching costs to substitute products Low 1-2-3-4-5 High
5. Intensity of substitute products promotion activities and market High 1-2-3-4-5 Low
penetration
the average rating of the forth force
Rivalry among competitors in an industry
1. Number of competitors (industry consolidation) Big 1-2-3-4-5 Small
2. Industry growth Slow 1-2-3-4-5 Fast
3. Fixed cost High 1-2-3-4-5 Low
4. Product differentiation Weak 1-2-3-4-5 Strong
5. Exit barriers High 1-2-3-4-5 Low
the average rating of the fifth force
the average rating of all five forces

low attractiveness 1 2 3 4 5 high attractiveness