PORTER'S

FIVE
FORCES

Oana Labes Mohamed ElRouby

MBA, CPA ACMA, CGMA, FPAC, MBA
Founder and President CFO MEA and Global
Financiario.com Finance Lead
Pharmanovia
Swipe
 A deep understanding of Porter's 5 Forces
will help CFOs and FP&A mitigate the
potential loss of business profits in favor
of suppliers, buyers, substitutes,
competitors or new entrants.

Porter's 5 Forces

1 Rivalry among existing competitors

2 Threat of new entrants

3 Power of Suppliers

4 Power of Customers
Swipe

5 Threat of Substitutes

Oana Labes, MBA, CPA Mohamed ElRouby, ACMA, CGMA, FPAC, MBA

3
 1 Rivalry among Existing
Competitors
Measures the number of
competitors and their ability
competitors
to undercut a company.
+ equivalent
products

competitive
power

2 Threat of new entrants Swipe

Measures how specialized knowledge

easily economies of scale
competition cost advantages
could arise from technical advantages
new market patent protection
competitors. barriers to entry

Oana Labes, MBA, CPA Mohamed ElRouby, ACMA, CGMA, FPAC, MBA

3
 3 Power of Suppliers

number of suppliers
size of suppliers
uniqueness of supplier Measures
service or product how easily
switching costs to suppliers
another supplier can drive up
ability to substitute the cost of
inputs inputs.

4 Power of Customers

number of buyers or
customers
size of each order
customer costs to switch to
Measures another supplier
customer customer price sensitivity
ability to drive
down prices Swipe

Oana Labes, MBA, CPA Mohamed ElRouby, ACMA, CGMA, FPAC, MBA

3
 5 Threat of Substitutes

Measures
performance of
customer the
substitutes
ease and ability
cost to adopt a
to switch
substitute
products

goods or services
that can be used in
place of a company's
products or services

What's a SUBSTITUTES CAN BE

DIRECT
Substitute?
(PEPSI - COLA) OR
INDIRECT
(PEPSI - WATER)

Swipe
Oana Labes, MBA, CPA Mohamed ElRouby, ACMA, CGMA, FPAC, MBA

3
Ring the bell
to never miss a post

I am a financial strategist with over 20 years of

business experience across several industries, 7 of
which spent directly building companies as an
entrepreneur, and 10 others advising and financing
companies as a senior lender.

Follow me at

https://www.linkedin.com/in/oanalabes/

Swipe

3
Ring the bell
to never miss a post

I'm a global finance leader with 20 years of experience

in global multinational companies like J&J, Novartis,
Allergan, Takeda, and Energizer. I'm also a global
finance speaker and writer.

Follow me at

https://www.linkedin.com/in/elrouby/

Swipe