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Management & Leadership vocabulary · Strategy and Planning

Five forces

Meaning in management & leadership, with examples

nounAdvanced term

In management & leadership, five forces means: A framework examining industry rivalry, new entrants, substitutes, supplier power and buyer power as influences on competition.

In Turkish: beş güç modeli

How it is used

Often called Porter's five forces; use for industry structure rather than a list of a firm's internal strengths.

Example sentences

  1. The five forces analysis highlighted the pressure from substitute services, not just direct rivals.

    Competition includes alternatives that meet the same need in another way.

  2. Using the five forces, the founders examined why a few large buyers could demand lower prices.

    Buyer concentration is considered as a source of bargaining pressure.

Common collocations

  • five forces analysis
  • Porter's five forces framework
  • competitive advantageSomething that allows a company to do better than its competitors, such as lower costs, a stronger brand, better technology or more skilled people.
  • SWOT analysisA planning tool that lists an organisation's internal strengths and weaknesses and the external opportunities and threats it faces, used before making strategic choices.

More terms: Strategy and Planning

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