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Michael Porter 5 Forces

The 6 Forces Design describes an approach  for business.In short, it is often referred to as SFM.  It is a model of market that is used to evaluate market competition.


Michael Porter created the 5 Forces Model. This model was not that efficient and for its enhancement 6 Forces Design was introduced. SWOT is likewise not that efficient as SFM, which is why six forces design is used typically used as replacement of SWOT.


6 areas of the marketplace assessed by SFM.


In the market-place there are 6 locations which are examined by the six forces design. These locations are discussed here:.

  1. Competition – Does a bunch of competition already exist in the market?

  2. New Starters – Can a new company enter the market and compete with the already existing ones?

  3. Buyers – Can a buyer quickly affect the market cost? Can the customer and price act together? To what degree is the position of the purchaser solid in the marketplace?

  4. Suppliers – The power of supplier is reverse to that of customers. Is the power of the buyer high?

  5. Alternatives – Just what is the degree to which a product and services can be effortlessly substituted?

  6. Complementary – What is the impact or effect of the corresponding product and services on the commercial area?


Usages of Six Forces Design.


Six forces designs are used for doing thorough analysis. It can also be used for individuals who are competing with other individuals in the employment market to secure employment.


The six forces model is deemed by most people to be better than Michael Porters 5 forces model and SWOT. It is an advanced model developed specially to overcome the drawbacks of 5 forces model and SWOT.


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