Whether you’re starting up a new business or seeking to create a competitive edge for your existing company, using competitive intelligence frameworks can certainly help you in your endeavor. But unlike the traditional SWOT analysis, Porter’s model is centered on the business environment. By analyzing five key forces that act in your market, this framework clarifies how the power is distributed between stakeholders, and therefore is able to give you invaluable insights on your strategy. For example, if the bargaining power of buyers in your industry is high, offering differentiated products might be a good solution.
Who has the power in your industry? Check the Porter’s five forces explained below.