Porter's Five Forces Analyser | Pro Outsourcing
PORTER'S FIVE FORCES
MARKET ANALYSIS

Porter's Five Forces Analyser

Before you build a category strategy, understand the market you're buying in. Porter's Five Forces shows where the power sits and how much leverage you really have. Score the drivers behind each force and the tool maps the market, rates its intensity, and tells you what it means for your negotiating position. Then print or save as PDF.

Score the drivers behind each of the five forces. The tool maps the market, rates its intensity and tells you how much leverage you really have as a buyer. For the thinking behind these tools, read Building a Procurement Strategy That Works.

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Step 1 — Score the drivers (1 = weak / low, 10 = strong / high)

Rate each driver for how strongly it applies. The tool averages them into a force intensity. As a buyer, your leverage is strongest when supplier power is low and your own buyer power is high. Strong rivalry between suppliers and credible substitutes help too. A low barrier to new entrants can widen the supplier pool over time, though the benefit to any single buyer is less direct.

Step 2 — Read the market

Low intensity (1–4) Moderate (4–7) High (7–10)
Porter's Five Forces is a strategic analysis framework developed by Professor Michael E. Porter. This independent tool applies the framework to procurement and category strategy. Pro Outsourcing Ltd is not affiliated with or endorsed by Michael Porter, Harvard Business School or Harvard Business Review.
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