Porter's 5-Power Model

Type of record:
  • Strategy method
  • Micro method
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Ideal innovation phases for this method:
  1. Innovation Phase
  2. 1
  3. 2
  4. 3
  5. 4
  6. 5
  7. 6
  8. 7
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  11. 10


Porter's 5-Power Model is a classic business model for analyzing the industry structure and the competitive situation. Not only is it still valid, it can also be used within the innovation process.

The model was developed to assess the average attractiveness or profitability level of an industry.

The following situations speak for the application:

- The participants are not aware of the risk of the existing business model or are not aware of it.
- the current situation should be considered in detail at the beginning or
- the model is known to the participants and a quick introduction is possible.
  • Effective for highly complex challenges
  • Effective for medium complex challenges
  • Effective for new business models
  • Effective for product innovations
  • Effective for radical innovations
  • Effective for service innovations
  • P1 Understanding (identify innovation fields - problem solving)
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