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Five Forces

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2

Activities

Intermediate

Learning Level

30-60 minutes

Time to Complete

Business Strategy

Focus

Overview

The Five Forces by Aurore enables students to determine the fierceness of competition within a market.

How it works

The tool provides key metrics that are indicative of competitive intensity. We guide learners to the correct analysis using data and quantitative decision-making that ultimately provides them with a threat level score that can be used to compare the attractiveness of multiple markets.

recommended Uses

Use this tool as a learning device to practice and apply high level concepts in Marketing, Strategy, Business, and Entrepreneurship courses in undergraduate and graduate programs.

Skills acquired

  • Understand the factors that impact market attractiveness.
  • Use critical thinking to compare the attractiveness of multiple markets and decide which ones to pursue.

Download The Framework

learning path

Analyze and evaluate market threat factors to advance through each of the five forces.

30-60 minutes to complete

Evaluate and rank each force by the highest impact to profitability in the market.

5 minutes to complete

Get market insights provided by data from the previous activities. The threat gauge monitors the intensity of threats posed by the five forces of competition. Use the dashboard to decide whether to pursue or abandon the market.

10-20 minutes to analyze

How To Guide + demo

Five Forces:
Ford

Today, we’ll use the Five Forces tool to analyze the forces that impact Ford Motor Company in the North American automotive market.  The Five Forces framework is a valuable tool for companies that want to launch a new product or enter a new market.

What are the five forces?

Created by Michael Porter in 1979, the goal of the Five Forces framework is to analyze the impact the sources of competitive pressure have on the marketplace. The result, ultimately, is to determine the level of attractiveness for government independent industries and markets. 

Market attractiveness is a product of two closely related things: the fierceness of competition within the market, and the potential profitability in the market. Typically, the market profitability potential is a function of the fierceness of competition. The more fierce, the lower the profitability.

In this framework, the process is to analyze the five forces by independently evaluating the factors inside each force. After completing the evaluations, the results on the dashboard quantify the threat of the market and provide a snapshot of the forces that have the highest impact and highest threat.

Jump to the guide

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