Michael Porter is a leading authority on business strategy and competitiveness. He developed the Five Forces model for industry analysis, which examines how five competitive forces - rivalry, potential new entrants, substitute products, buyer power and supplier power - influence profitability within an industry. The model helps strategic managers understand their industry context and develop a competitive advantage over rivals.

1. MICHAEL PORTER’S FIVE FORCE MODEL

3. M.B.A. with high distinction from the Harvard Business School and Ph.D. in Business Economics from Harvard University

4. Author of 18 books and numerous articles (Competitive Strategy, Competitive Advantage, Competitive Advantage of Nations, and On Competition)

5. Six-time winner of the McKinsey Award for the best Harvard Business Review article of the year

6. Bishop William Lawrence University Professor at Harvard Business SchoolBorn: 1947 (age 62–63) Occupation: Author, Management Consultant

8. An advisor to business, government, and the social sector. He has served as strategy advisor to numerous leading U.S. and international companies

9. Serves on two public boards of directors

10. Plays an active role in U.S. economic policy and has led national economic strategy programs in numerous countries

11. Currently working with the Presidents of Rwanda and South Korea

13. It is a framework for the industry analysis and business strategy development

14. Industry as being influenced by five forces

15. Forces determine the competitive intensity and therefore attractiveness of a market (Attractiveness in this context refers to the overall industry profitability)

17. RIVALRY AMONG EXISTING COMPETITORS Exit barriers Industry concentration Fixed Costs Industry Growth Product differences Switching costs Brand Identity Diversity of rivals

18. BARRIERS TO ENTRY Government policy Patents and proprietary knowledge serve to restrict entry into an industry Asset specificity inhibits entry into an industry Economies of scale (MES) Access to distribution channels Access to distribution inputs

19. SUBSTITUTE PRODUCTS OR SERVICES Buyer inclination to substitute Switching cost Price performance trade-off of substitutes

20. BUYER POWER Bargaining leverage Buyer Volume Buyer information Brand identity Price sensitivity Threat of backward integration Product differentiation Substitutes available Buyers’ incentives

21. SUPPLIER POWER Supplier concentration Importance of volume to supplier Differentiation of inputs Switching costs of firms in the industry Threat of forward integration Impact of inputs on cost or differentiation