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Good day! Today we will be discussing about PORTER'S FIVE FORCES MODEL. At the end of this
discussion, everyone will be able to know what is Porter's five forces model all about. Second, everyone
will know what are those five forces and their roles in a competitive market. And lastly, to distinguish
the difference between SWOT ANALYSIS and PORTER'S 5 FORCES MODEL.

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So Starting off, what is PORTER'S 5 forces model?

Porter's five forces model is a simple framework for assessing and evaluating the competitive strength
and position of a business organization.

So since starting a business do not start the easy way, the most important thing to do is consider
analyzing the market and the main players involved. And that's the role of Porter's five forces model—it
helps entrepreneurs analyze where the business should be and the things to do in order to utilize the
advantage in a competitive environment.

And as you can see, these are the five forces that play huge roles in business industries and
entrepreneurial activities.

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Since we're talking about playing with higher chances in the market, the main question would be HOW?
Now that's when Porter's Five forces model can be put into use. We can utilize it for business analysis
and there we can study the variety of activities surrounding your business which involve the
competitors/rivals, the buyer power, supplier power, and the threat of new entries and substitutes. By
analyzing these forces, we get to come up with a clearer steps to overpower these existing forces that
may trigger your entity's weakness.

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Now here are the five forces. The supply power, buyer power, competitive rivalry, the threat of
SUBSTITUTION and the threat of new entry.

Supply power is the ability of vendors to increase prices of your inputs. Then the buyer power refers to
drive down prices. Competitive rivalry is the strength of competition. The threat of substitution is the
degree to which different products and services can be used instead of your offering. The threat of new
entry is how easily new competitors can enter the market.

Later on, we will discuss and analyze them one by one but we have to know first, why are they
important.

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The very first thing why entrepreneurs should include this analyzing phase in business is because first
and foremost, it helps discover where the power of the business lies. So when you include Porter's five
forces model in your business planning, you have better chances of committing no mistake. Remember
that your business may not be the only business operating. So you gather all the main players in the
market to better analyze which way your business should go and where should it not. Basically, the main
pullers of business such as the supply power and buyer power can be both a threat, so positioning your
business in a place where it can manipulate all these forces can be an advantage.

Second, it assesses a business's competitiveness. So it's true that when there are many new entries and
substitutions, your business might be placed at the backstage. Knowing consumers, and it might be a
cliché but everyone loves new. With that being said, your business must meet the needs of the
customers but not that alone, you must also find out what your rivals offer that you don't have yet, so
that your customers will never have to switch from you to the new entries. In this simple ways, by
knowing, a business can improve its offers and perform better amidst the existing competitors. And this
may outperform the rest of the rivals.

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The first force is the supply power..

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Now, let's move onto the last slide of this presentation. Here will know the difference between SWOT
analysis and Porter's five forces model.
Although, it might be a common understanding that both imply the same analysis and the same purpose
in business planning, it is still vital to distinguish why Five Forces model is still different from SWOT.

From what we all know, Swot means Strength, Weakness, Opportunities, and threats. And all these
variables only focus on your business and not your rivals, which makes it pretty much outdated knowing
that we're tackling about competitive environment in relation to business.

So these are the focuses of the two means of analyzing the business.

First difference. SWOT can be described as a more general and overall assessment, whereas five forces
focuses on a single growth decision.

Second, swot is often used to get a picture of the firm's current position, while five forces assess the
viability of a specific product or service.

Lastly, SWOT focuses on your business and its position alone, whereas Five forces help you find out how
competitors could inhibit you.

Therefore, the key point in these differences is that SWOT analysis only assesses the nature or status of
your business and it's limited to its strength, weakness, opportunities and threats in general. While
Porter's Five Forces model is exceptionally visionary in a sense that it covers what needs to be covered
in analyzing potential and risks, and the ways to manage the business amidst the countless forces that
may pull it down in the business sphere.

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And that is where our discussion ends and we hope that you've learned what you have to learn in
planning out your business ventures. Thank you for sharing with us your time.