**📅 Date:** ➤ ⌈[[2025-05-05-Mon〚Porter’s Five Forces ▪ HHI〛]]⌋ **📌 Time**: Review of[[2025-05-02-Fri〚 💰PESTLE Framework ▪ 👾Thoughts- Will Knowledge the Flavour Of Your Coffee〛|2025-05-02-Fri]] **💭 Note:** ➤ by **Michael E. Porter** - Porter’s Five Forces = A tool to assess the **structural competitiveness of an industry**, used in both corporate strategy and equity analysis ➤ Summary 1. 🧱 Threat of New Entrants 2. ⚔ Threat of Substitutes 3. 💰 Bargaining Power of Buyers 4. 🔧 Bargaining Power of Suppliers 5. 🤼 Rivalry Among Existing Competitors ⇩ 🅻🅸🅽🅺🆂 ⇩ **🏷️ Tags**: #💰/Economy-Model **🗂 Menu**: ⌈[[✢ M O C ➣ 05 ⌈M A Y - 2 0 2 5⌉ ✢|2025 - M A Y- MOC]]⌋ ⌈[[✢ L O G ➢ 05 ⌈M A Y - 2 0 2 5⌉ ✢|2025 - M A Y - LOG]]⌋ #👾/Private ➤ ⌈[[💰024-HHI(Herfindahl-Hirschman Index赫希曼指数)]]⌋ ➤ ⌈[[💰024 - PESTLE Framework – Macro-Environmental Strategic Analysis]]⌋ ---- ![[Screenshot 2025-06-06 at 13.06.26.png]] --- # 🏗 Porter’s Five Forces Framework (波特五力分析模型) ![[IMG_0150.jpeg|#left|300]] ## 📌I. What is Porter’s Five Forces? Porter’s Five Forces is a strategic framework developed by **Michael E. Porter** to analyze the **competitive forces shaping an industry**. It helps assess an industry's **attractiveness** and a company’s **long-term profitability potential**. > 🔑：用于行业分析、定价能力判断、企业护城河评估（Level I 和 II） --- ## 🔧 II. The Five Forces ### 1. 🧱 Threat of New Entrants（新进入者的威胁） - High when: - Entry barriers are low (进入壁垒低) - Capital requirement is small - Brand loyalty is weak - Leads to: More competition, lower profit margins **Barriers to Entry（进入壁垒） include:** - Economies of scale（规模经济） - Brand identity（品牌认知） - Regulation（行业管制） - Access to distribution channels（渠道控制） --- ### 2. ⚔ Threat of Substitutes（替代品的威胁） - High when: - Alternative products/services offer similar benefits at lower cost - Switching cost for customer is low - Example: Tea vs Coffee, Ride-hailing vs Taxi → Puts **ceiling** on pricing and margins --- ### 3. 💰 Bargaining Power of Buyers（买方议价能力） - Strong when: - Few large buyers - Products are standardized - Switching costs are low - Buyers can demand **lower prices** or **better service** --- ### 4. 🔧 Bargaining Power of Suppliers（供应商议价能力） - High when: - Few suppliers control critical inputs - No substitutes for the input - Supplier can vertically integrate - Can lead to **cost pressure** on firms --- ### 5. 🤼 Rivalry Among Existing Competitors（现有竞争者之间的竞争） - Intense when: - Many players of equal size - Industry growth is slow - Fixed costs are high - Products lack differentiation → Can lead to **price wars**, shrinking profits --- ## III. 🎯 Purpose in Strategy - Porter’s model helps companies: - Identify **competitive advantages**（竞争优势） - Understand **profit potential**（利润空间） - Guide **positioning strategy**（市场定位策略） - Choose **defensive vs offensive strategies** - → Helps forecast: - **Pricing power** - **Sustainability of ROIC** - **M&A opportunities** --- ### Summary > Porter’s Five Forces = A tool to assess the **structural competitiveness of an industry**, used in both corporate strategy and equity analysis. - Stronger forces → more competition → lower profitability - Weaker forces → attractive industry → higher long-term margins