Porter’s Five Forces Template
Porter’s Five Forces Template to analyze competition and market entry profitability. Instant download Excel template with interactive charts.
Developed by Harvard Business School professor Michael Porter, Porter’s Five Forces Template is an analysis and management tool showcasing the competitive environment of your business. The Excel template helps estimate the competition as well as develop a strategy for new market entries.
Porter’s Five Competitive Forces included in this Excel template are:
- New Entrants
- Suppliers Power
- Buyers Power
- Competitive Rivalry
This powerful yet simple Excel tool can play a vital role in better perceiving the competition level, determining the profitability along with the general business environment. Thanks to this methodology, you may easily outline the strengths and weaknesses of your business during expansion to make well-informed decisions.
Porter’s 5 Forces Template Features
Our Excel template model is constructed by three main parts. These are Settings, Five Forces Sheets and Analysis Dashboard.
The dashboard of Porter’s Five Forces Model has two main functions. Firstly, it is used to define the settings.
Here you can change the “Threat Scale” from the dropdown menu. In addition, for comparison, you may define your “Market List” up to five markets.
Secondly, the “Navigation Wheel” is included here so that you can easily navigate between the five forces as well as the Analysis Dashboard. Just click on the relevant force to visit that section. Additionally, you can click on the “Analysis Dashboard” button to go to this section.
Porter’s Five Forces
In this template, there are specific sheets for each force of Porter’s Competitive Model. Within those sections, you can include details such as determinants, descriptions and notes. Furthermore, you can use the dropdown menu options to select the threat score per market.
Threat of New Entrants
The first force measures the ease of entering a new market. If it takes little effort or investment to enter a new industry, this means that the rivals/competitors can easily enter the market. Relevant determinants can include barriers to entry, economies of scale, capital requirements, etc.
Threat of Substitute Products
This refers to the possibility of finding alternatives to your product or services. Some determinants may include the number of substitute products and/or services, cost of change, ease of substitutions, etc. If the substitution is rather easy, this positions your business at risk.
Power of Suppliers
In this force, the aim is to measure the dependency on the suppliers. This mainly includes the suppliers’ freedom to increase or modify prices. If their service is rather unique or they are a monopoly, the bargaining power of the supplier is higher. The determinants can be the number of suppliers, supplier switching cost, etc.
Power of Buyers
Also referred as the bargaining power of customers, this force shows the ability of customers to pressurize a company. If the buyer is strong enough to shape the prices the power would be high. Determinants can be the number of customers, buyer switching cost, customer price sensitivity, etc.
Rivalry Among Existing Competitors
Mostly being the most important determinant of new market entries, this force measure the level of competition intensity. Both quantitative and qualitative factors play an important role.
Not only the number of existing competitors are critical but also their strength. Determinants include but are not limited to the number of competitors, their competition strategies and unique selling proposition (USP), customer loyalty, etc.
Analysis Dashboard section of the Porter’s Five Forces Template includes three ready-made charts and two different filter options.
Firstly, the Threats and Scores chart lists the threats included in the five forces sheets. This chart can be filtered based on market and force.
Secondly, you may use the “Average Risk for Markets” chart to get a quick summary of the comparison between markets.
Thirdly and lastly, to get an overall view of forces per market, you may check the “Average Risk for Forces” chart.
Porter’s 5 Forces Template Features Summary:
- Competition analysis & market entry model
- Customizable dashboard analysis charts
- Informational notes included
- No installation needed, ready-to-use
- Works both on Mac and Windows
- Compatible with Excel 2010 and later versions
- Does not include any VBA code or macros