1. Porter 5+ Force Model Suppliers Buyers Potential Entrants Substitutes The Industry Rivalry among existing firms Threat of new entrants Threat of substitute products Bargaining power of buyers External Forces: Political & legal, Technological, Demographic, Macroeconomic Bargaining power of suppliers Karen Schnatterly, Carlson School of Management, University of Minnesota, 2/2005

2. Competitive Advantage Competitive Advantage comes from: –Core Competencies –that Address the Strong Forces –and are Difficult to Imitate

3. Strength Indicators - 1

4. Strength Indicators - 2

5. References Porter, M. How competitive forces shape strategy. Harvard Business Review, March/April 1979. Porter, M. How competitive forces shape strategy. McKinsey Quarterly, Spring 1980, pp. 34-50. Porter, M. (1980) Competitive Strategy, Free Press, New York, 1980. Porter, M. What is Strategy? Harvard Business Review, Nov-Dec 1996, pp. 61-78.