Porters Five Forces Analysis Map

Five Forces_ Porters A SWOT analysis is a microanalytical tool focusing on a specific company's data and analysis. In contrast, analysis is considered a macro tool in business analytics because it looks at the industry's economy. Understanding competitive forces and their underlying causes reveal the underlying causes of an industry's current profitability while also providing a framework for anticipating and influencing competition (and profitability) over time. As illustrated in this Porters_ Five Forces Analysis diagram, Porter theorized that understanding the competitive forces at work and the overall industry structure is critical for effective, strategic decision-making and developing a compelling competitive strategy for the future.