Porter's Five Forces
Porter's Five Forces is a widely used business analysis tool that helps companies understand their competitive position in the market. Created by Michael Porter from Harvard Business School, it's like a business 'health check' that consultants use to evaluate how strong or challenging a market is. Just as doctors check vital signs, consultants use this framework to check five key areas that affect any business: how easily new companies can enter the market, how much power customers have, how much power suppliers have, whether there are substitute products available, and how intense the competition is. It's commonly used in strategy consulting and business analysis roles to help companies make better decisions about entering new markets or improving their current position.
Examples in Resumes
Led market analysis projects using Porter's Five Forces framework for Fortune 500 clients
Created strategic recommendations based on Porter's Five Forces analysis for retail industry clients
Conducted competitive landscape assessment using Porter's Five Forces methodology for market entry strategy
Typical job title: "Strategy Consultants"
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Where to Find Strategy Consultants
Professional Networks
Learning Resources
Example Interview Questions
Senior Level Questions
Q: How would you modify Porter's Five Forces to analyze a digital platform business?
Expected Answer: A senior consultant should discuss how traditional industry boundaries blur in digital businesses, how network effects impact competitive forces, and how the framework needs adaptation for multi-sided platforms. They should provide specific examples from their experience.
Q: How have you used Porter's Five Forces to drive strategic decisions?
Expected Answer: Should demonstrate multiple real-world examples of using the framework to make specific recommendations, showing how analysis led to actionable insights and measurable business outcomes.
Mid Level Questions
Q: Can you explain how Porter's Five Forces would apply to a specific industry?
Expected Answer: Should be able to walk through each force with specific industry examples, showing understanding of how different factors interact and impact business strategy.
Q: How do you gather data to conduct a Five Forces analysis?
Expected Answer: Should explain practical approaches to gathering market intelligence, using industry reports, competitor analysis, and customer research to inform each element of the framework.
Junior Level Questions
Q: What are the five forces in Porter's model?
Expected Answer: Should clearly explain the basic forces: competitive rivalry, threat of new entrants, threat of substitutes, buyer power, and supplier power, with simple examples.
Q: Why is Porter's Five Forces useful for business strategy?
Expected Answer: Should explain how the framework helps understand competitive position and market attractiveness, using straightforward examples from well-known industries.
Experience Level Indicators
Junior (0-2 years)
- Basic understanding of competitive analysis
- Data gathering and research
- Simple industry analysis
- Presentation of findings
Mid (2-5 years)
- Detailed market analysis
- Complex industry assessment
- Client presentation skills
- Strategic recommendation development
Senior (5+ years)
- Advanced strategic analysis
- Project leadership
- Client relationship management
- Framework modification for specific contexts
Red Flags to Watch For
- Unable to explain the basic five forces clearly
- Lack of real-world application experience
- No understanding of data gathering methods
- Poor analytical thinking skills
