Porter's Five Forces
Judging whether an industry is worth entering, or why its margins are thin.
Use the idea inside a branch. Never say the name.
How attractive is the industry?
- Rivalry among current players
- New entrants
- Substitutes
- Buyers' power
- Suppliers' power
How attractive is the industry?
Rivalry among current players
New entrants
Substitutes
Buyers' power
Suppliers' power
Watch out: Name the one or two forces that matter here instead of weighing all five equally.
On a case
Is quick commerce in India an attractive business?
Quick commerce margins
- Rivalry: several funded apps discounting
- New entrants: dark stores need heavy capital
- Substitutes: kirana stores deliver too
- Buyers: switch apps at no cost
- Suppliers: large brands set terms
Quick commerce margins
Rivalry: several funded apps discounting
New entrants: dark stores need heavy capital
Substitutes: kirana stores deliver too
Buyers: switch apps at no cost
Suppliers: large brands set terms