Porter's Five Forces Diagram Example
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Porter's Five Forces Diagram Example

The intensity of competitive rivalryMEDIUMThreatof new entryLOWBargaining power of supplierMEDIUMThreatof substitute productsMEDIUMBargaining power of buyersMEDIUMLooking for trusted brandsLush has great ethical values & strong CSRProducts are expensive compared to competitorsLots of competitors e.g., the body shop, L'Oreal, Clinque, etc.High captial requirements to set upLots of established large competitors e.g., The Body Shop, L'Oreal, etcR&D/product development is expensiveIndustry requires economics of scaleOther competitors selling similar products for lessConvenience -- supermarkets sell cosmeticsStrong USP - Substantial product differentiationEthical buying is very important for the brandHigh cost of switching suppliersMore diverse distribution channelsVolume is critical to suppliersUse Porter's 5 Forces Analysis Model
publish time: 2021-07-23

The given Porter’s Five Forces example portrays the five competitive forces that are quintessential for an industry. Three examples are there to explain things in a better way. The first company where there has been the application of Porter’s Five forces is Lush. It belongs to cosmetics and self-care. The second is Shrub Club. It belongs to a fictional business belonging to the Vegan Market arena and the fast-food chain industry. Finally, the last example is Patagonia, which belongs to the outdoor or the sports clothing industry.

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