McGraw Hill Five Forces Diagram

The McGraw-Hill Five Forces diagram is a tool used to analyze the competitive landscape of an industry. This diagram looks specifically at five forces that affect the activity and profitability of firms operating within an industry: competition, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitutes, and potential entrants. In the case of McKesson Corporation - Wholesale Pharmaceutical Distribution, these five forces can be used to determine their current market position as well as opportunities for growth. As you can see, the Five Forces diagram is a popular strategic tool used to assess the industry environment in which an organization operates. By identifying and analyzing the five forces — customers, suppliers, substitutes, competitors, and barriers to entry — businesses can better understand their market position in comparison to other players. The result is a better understanding of where they should focus their efforts in order to stay ahead of the competition. This will help the business build a plan for success and capitalize on its unique strengths. Use EdrawMax to create and download this template for your work.