The Explainer: The 5 Forces That Make Companies Successful

Michael Porter’s theory has shaped a generation of academic research and business practice.

Understanding the competitive forces, and their underlying causes, reveals the roots of an industry’s current profitability while providing a framework for anticipating and influencing competition (and profitability) over time. A healthy industry structure should be as much a competitive concern to strategists as their company’s own position. Understanding industry structure is also essential to effective strategic positioning. Defending against the competitive forces and shaping them in a company’s favor are crucial to strategy.

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[wajdF]

My assistant professor took about 30 minutes to explain it and still students at the end were like confused. And just my 3 minutes here, and I got a full picture.

[hsetiono]

1. Buyers
2. Suppliers
3. Substitutes
4. New Entrants
5. Existing Rivals

[j.g.s.njayarathna]

Harvard business, Harvard Law, Harvard medicine! Being thankful to all these ❤️

[shrah]

gorgeous explanation, I've watched countless videos before understanding this.

[gabriellejoson]

Thank you for that simple explanation. It helped me to grasp ideas for my upcoming presentation (About Porter's Model).

[chalondajackson]

I was having a hard time retaining the information and understanding what this term means, but this video was so easy to understand! wow thanks. super simple and to the point

[bluedreamy]

Love this video! Super clear and good examples!

[mgr]

Excellent video - it would be nice if everyone followed your format.

[yusufbas]

it's a great presentation and animation.
it's memorable.

[kalptaruagarwal]

This is the best explanation you can get on Porter five forces. Thank you HBR ❤️

[tecsonrhoyancheta]

Hi good day, may I ask you something ? Sources or Forces? What do you think?

[magdalinkanavalli]

00:00 Competition is not about more sales or market share

00:15 Profitability depends on five competitive forces.

00:27 Price competition is fierce in the airline industry

00:40 Challenges faced in pricing by companies

00:57 Competition can come from unexpected sources

01:11 New airline reduces costs and disrupts competition

01:26 Airlines resort to extra fees to maintain profits

01:42 Understanding industry structures helps shape company's future

[levipurdue]

No way Harvard business just used clout unironically lmao

[ogzumhan]

Its a freshing Explantation like sparkling water.