As the name suggests, Porter's Five Forces are five separate threat factors that can impact business growth. The theory is credited to senior Harvard Business School academic Michael E. Porter.

Porter's Five Forces is a business analysis model that helps to explain why various industries can sustain different levels of profitability. The model was published in Michael E. Porter's book, Competitive Strategy: Techniques for Analyzing Industries and Competitors, in 1979.

The Five Forces model is widely used to analyze the industry structure of a company as well as its corporate strategy. Porter identified five undeniable forces that play a part in shaping every market and industry in the world, with some caveats. The Five Forces are frequently used to measure competition intensity, attractiveness, and profitability of an industry or market. Access our complimentary guide and template now.