Porter's 5 Forces (Tesla Example) - How to do an Industry Analysis - Porters 5 Forces Explained
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- เผยแพร่เมื่อ 22 พ.ค. 2024
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According to Porter's 5 forces model. The competitive environment in an industry is most moved by 5 very distinct forces
The threat of new entrants
Threat of substitutes
Rivalry among existing companies
Bargaining power of buyers
Bargaining power of suppliers
These are in no particular order. The 5 forces model teaches us that an industry can often be complex and deserves to be analyzed from different aspects. It is important how many direct competitors a company has, but it is also important if they only have a few customers or if those customers can easily go for another product that one of our competitors produce. Ultimately, porters five forces are intended to be a more comprehensive way to analyze an industry for us as business owners or for us as investors looking for great companies with a competitive advantage.
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Do you like using Porter’s five forces for an industry analysis?
Learn to Invest It can be a helpful tool to look thoughtfully at a companies long term challenges.
How can I look for the reliable data that you mention above? Thank you
Thanks a lot for your video, very helpful!
teachers forced me to watch this
glad they did because u did way better at explaining then they did
YES!
This is fantastic, explained thoroughly and clearly in under 10 minutes, will definitely be using this as a tool in my upcoming Uni assignment now it's been explained so well
You made it super easy to understand this. I really love how you explained the forces. Thanks a lot😊
Jimmy: "Hi, I'm Jimmy .."
Me: Clicks Thumbs Up already.
Great pedagogy! One of the clearest and most lively videos on the subject
Thanks for making this video…your explanations were explicit and straight to the point.. This will surely help me with my assignment
You have clearly explained each of the forces. This is very helpful for me as I am doing my strategic management paper. Thank you
Jimmy, business-nerd to business-nerd, great video about the Industry Analysis of Tesla and the analysis of the sector it operates in, the automotive industry.
Very interesting analysis model here - thanks for sharing!
Fantastic video, having you tie to an actual eXample helps me remember it much better
Thanks Jimmy! Very clear and stright forward
Jimmy, thank you for the video. As usual, well done. In this particular example
(Tesla), I differ in opinion regarding the level of “Threat of Substitutes”. At
most, I think it might be “Medium” or even “Low”. Although there may be substitute
transportation available, to own or not to own a Tesla is based on much more
than simply seeking “any” transportation. Most people that choose a particular
form of transportation do so for case specific use, or intended use, and not
simply “just because”. If I choose public transportation, there’s a reason why.
If I choose a car, there’s a reason why. If I choose a pickup, there’s a reason
why. If I choose to fly, there’s reason why. If I choose to buy a Tesla, there
is a reason why. According to what I’m observing, the reasons to buy a Tesla
are becoming more compelling for the general public. Therefore, the “threat of
substitutes” will probably be “medium” or even “low” for Tesla. Once again, thanks for the great videos that you make.
Thank you for this! A great analysis that really helped me bring to life and thoroughly understand Porter’s Five Forces.
Thanks for sharing . Very simple and to the point !
Good vid. Thank you. I am now enlightened - will be basing my future discussions on this!
very good example. thank you so much for the explanation! this helps me!
Hey there life saver, thank you for making this video. Very helpful with the "why" and "because" descriptions. This has helped me better understand my project for writing an analysis!
yes me too.. have you project now .if yyou have can i get some copy for my reseach
Another great informative video, thanks again!
Thank you so much. I was confused by those.
Bro it was very helpful thankyou
Very thorough explanation..thank u very much
Fantastic narration and inspiring. I mow know porter 5 and start to analyse my business model
you are just awesome in your explanation and energy. I liked it!!!
Learn something new everytime from your video. Thank you!
I'm glad you liked it, thanks for all the support 👍😁
Thanks easy to understand
This helped a lot! thank you :)
Thank you for this ! This is a great video !
Well explained.
I was quite confused by Porter's 5 Forces, until I watched this video, thanks. Although the problem is now I am not studying and looking up prices for Tesla's.
Excellent video! Very good info!
Thanks :) and thanks for all the support!! 🙂👍👍🙂
I enjoyed this breakdown!
Amazing video. Thank you
Excellent video. Subscribed. Other than your 8 steps to Analyze a stock, do you recommend any others for beginners?
Thankssss, helped a lot!!
Thank you, and keep going
excellent video thankyou
Phenomenal video.
This was great!
Amazing video!
Very insightful
thank you it helped me a lot
Excellent use of Porter's 5 Forces !!!
Thanks 🙂
Nice tq..Sir
Great video thanks
Nice work Jimmy!👍 The same happened to Fitbit a few years ago. Now look where it is.
Very true!
Well done bro. Nice work. Keep up the good work.
Thank you
Thanks for the Support!!!! :)
@@LearntoInvest we always with you bro. because your videos are very real and honesty very useful for everyone.
Thank you keep do the great work.
Thank you
Thanks you helped out in my school project :P
Thank you that was great, much respect to you.
Great video!
Thanks!
Perfect explanation, may God bless you)
Wow thank I understood yo lecture thank u all the from Zambia
When it comes to rivalry among competitors I like to mention barriers to exit where if it’s hard for a competitor to leave they’ll fight and reduce industry profits.
That's a good point
how does one conclude after making this analysis should the medium and low outcomes outweigh the high
I believe the threat of new entrants in the EV market is actually very high as the chinese are expanding their markets to europe and the us and as also the traditional automakers (e.g. Porsche) are releasing their own EVs. The market might still be interesting as it is growing rapidly but with many new competitors I am not sure if profitable growth will be in the cards for tesla.
But product differientation is different and so competition should be medium
@@AdamArtist
how so?
GOOD STUFF
Awesome 🔍
Thank you so much for your explanation.
I have a quick question: if the buyer's demand increases, in this case how the following forces will be
The threat of new entrants = ( Low or High or Medium)?
Threat of substitutes = ( Low or High or Medium)?
Rivalry among existing companies = ( Low or High or Medium)?
Bargaining power of buyers = ( Low or High or Medium)?
Bargaining power of suppliers = ( Low or High or Medium)?
It real good for understamd i can be happy if you bring another lesson about ut
It’s a good qualitative way to value a stock that I would pair with the numbers and ratios.
For sure, that's a great addition to the process
What if I were to assign concrete scores to the criteria, e.g. Threat of entrants - 3, Bargaining power of buyer - 4, Bargaining power of suppliers - 7, and Threats of substitutes - 8, what would be the formula to calculate the rivalry? Simple average or?
at 4:29 can anyone provide a link to that article?
Jimmy - I would appreciate if you could do a video on stock buybacks. In particular the amount of stock buybacks and the reason for them plus their effect on the stock price.
That's a great idea, I'll be sure to do that video soon
Stock buy backs generally increase the price of the stock since the company is “reducing” its shares thus making the stocks more valuable. supply and demand
So if tesla is competitiveness company in the market then what would be the low and what would be the high, like treats of the entrance is low
do you have pdf file or word file .i need only copy past thank you
Isn't Porter's 5 Forces model used for analysis of an industry instead of a particular company? Like is the model applicable for a single brand like TESLA?
Isn't p5f an external analysis? Therefore we're not looking at the conpany's strenghts and weaknesses, but the industry's opportunities and threats?
I think you have to connect the company with the industry, otherwise, all car companies in the industry would have the same porter's 5 forces outcome.
You're cool man!
great content
Well, now that you ask for anything that I've missed about this little analysis.
I do believe if I remember correctly, Warren Buffet talking a lot about meeting/knowing the people behind the company.
I'm using that example to point out things I've seen from multiple other videos and analyses.
Tesla likes to reinvest for the sake of constantly upgrading the brand/products and Elon likes to built/being productive towards making everything in his mind as fast as possible (in his lifetime)
Other companies, do what I would make the statement to say, like to get settled and then in a somehow reasonable/slow /moderate pace.
If Coca Cola should make anything new shouldn't it be an entrance to the energy drink market - if they are not already there?
I also don't really know if energy drinks are a real and potential threat to Cola.
Feel free to correct me where I seem wrong - it was just a spontaneous thought...so
The goal of this video was to walk through an example of how to analyze an industry using porters 5 forces. It wasn't intended to be an analysis of Tesla as a company, it was an analysis of Tesla within the auto industry. Besides that I agree with you that tesla is reinvesting tons to further their products
@@LearntoInvest Hehe, yeah I know I've made it a little far fetched, but then again It was just my first thought to your video!
I'm personally still new to a lot of the topic you bring up, but it's an absolute pleasure to follow along - and feel smarter! :)
Oh and I'm quite curious about something you see, I'm studying machine engineering at the moment and I have my 2 dream jobs set in mind - work on- and offshore with windmills and platforms.
However, I want to ask, due to a bit of curiosity on the subject, where the oil and wind industry is going.
There is only so much water and land area where we can place windmills and compare that to the oil&gas industry, then it's limited what the earth has in its pocket deep down in the ground and our storage of oil and whatnot.
I personally think that wind has the best horizon for the future and, just to be dark, that oil and gas don't have the brightest future.
I don't know what you have covered in videos, or what you know in general, but if I'd like to work for Maersk, Total, Siemens, Ørsted, etc. what do you think is in stores?
Also from an investors perspective? Can energy be good for another 100 years?
4:54 suppliers could either WHAT???? 💀💀 all jokes aside great great content :)
You mention that the results would be very different if you'd be looking at Ford - but isn't the idea to look at the industry itself, meaning that it would be the same for all actors in the market? As I understand it, the next step would be to evaluate how well one player can stand against the forces
Porters analyses industry profitability - competition is only a component of the analysis
Tesla does not only have competition from gasoline vehicles but also from and more traditional car companies producing electrical vehicles
Very good point! 🙂
Too many things can take away, watched two times, made a bunch of notes
This may sound crazy but I don't think the entry barrier of Tesla is small. Wait 5 years and I would not be surprised to see another 5 companies doing space projects with the government initiatives - probably a better way, who knows.
Threat level midnight
Can't costs of entry and scale economies be discussed as one point?
Can you do a video about Pfizer please
Thank you
Ah sho Bradley.
Ah sure Jarred. Business reunited us once again!
Threat of Entrants is Low - Really?
Good analysis but I disagree with some of ur conclusions. Goes to show that these can b quite subjective
For sure!!! 60% art 40% skill... Or something like that 🙂🤔🙂
👆👆👆Your selfless deed is height. I forever remember you for it .Thank you sir you’re indeed a blessing to me and my household 🙏🙏🙏
too much ads
I hope I pass tomorrow
did you pass? its two weeks now.
@@davidbalogun8830 Porters never came out lol
4:57 you said rape instead of raise which is the same result for tesla 😂
👆👆👆Your selfless deed is height. I forever remember you for it .Thank you sir you’re indeed a blessing to me and my household 🙏🙏🙏
👆👆👆Your selfless deed is height. I forever remember you for it .Thank you sir you’re indeed a blessing to me and my household 🙏🙏🙏