Business Management

Porter’s Five Forces Framework

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Word Count

2500 words


Business Strategy


5 Days

Assignment Criteria


You have been asked to prepare a 2,500 word report on Porter's Five Forces Framework. 

With the aid of clearly drawn diagram explain the key elements of Porter's Five Forces Framework. What are the principal benefits and challenges in using this framework to inform strategy? 

Your report must be structured as follows: 

  • Purpose (2 marks
  • Background (3 marks
  • Porter's Five Forces Framework o Diagram (2 marks) o Components (10 marks) o Advantages and challenges (8 marks) Discussion (5 marks
  • Conclusion (5 marks). 

Five (5) additional marks will be allocated to English expression and grammar.

Tips for preparing your report

  • Define your terms; 
  • Clearly explain the concepts (better explanations will include concrete examples); 
  • Make use of multiple references (minimum of ten); 
  • Keep to the word limit; and 
  • Ensure your assignment is well-presented and free from grammatical and typographical errors and appropriately referenced.

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Assignment Solution


The report analyses the strategy referred to as 'Porter's Five Force Framework', with an understanding of its usage in a business environment and its strategic abilities to be used in formulating a corporate business strategy. It analyses the importance of the framework in business decision making in areas of diversification, innovation, and change in leadership in business. An overall analysis includes an assessment of the competitive rivalry that exists within the industry, the bargaining powers of suppliers and customers, the threats posed by the new entrants and substitutes for the product, is analysed and critically reflected upon to assess their importance in the changing face of the businesses as well as the advantages and challenges associated with the use of the framework in a business, would be covered under the report (Jurevicius, 2013).

All such analysis has been considered to be of importance, keeping in mind the debate that questions the value of the age-old framework used over decades by businesses to bring out competitive advantages and lead the organization towards long-term success.


The Porter's Five Force Framework devised by Professor Michael Porter has seen its usage in both businesses as well as marketing related planning for organizations. The framework was introduced in 1979 in Porter's first article in the Harvard Business Review publishes in the name of 'How Competitive Forces Shape Strategy', to assess profit potentially in the market as well as devising a competitive edge by analysing the level of competition that exists in the market or business segment (Martin, 2014).

The purpose of the model is to analyze, the industry attractiveness and competitive forces that exist in the industry, that are needed to be analyzed before initiating a new business or gaining a competitive edge in an existing business (Roy, 2011). On analysis of the above areas, it is by means of sound strategic corporate strategies, an organization can target to shape the forces in a way that they support the organization's success among all forces in the marketplace.

Deducing the fact, that a market being attractive does not guarantee the success of all organizations, it is by the conglomeration of devised strategies, processes and devising the unique selling proposition of its products and services that an organization can rule in the market (Morris, 2013). Considering such challenges brings in the descriptive analysis of all its dimensions rather than just a filthy understanding.

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