The Porter's 5 Forces Model - Simplest explanation ever
ฝัง
- เผยแพร่เมื่อ 19 มิ.ย. 2024
- The Porter's 5 Forces Model - Simplest possible explanation for an important model used to gauge competitiveness in a marketplace. This video covers all the forces that form the core of the model with the help of relevant examples.
Link to Porter's Generic Strategies:
• Porter's Generic Strat...
If you love the content here or found this video useful, useful, feel free to buy me a coffee! Your support will be highly appreciated! :)
www.buymeacoffee.com/mistersi...
This simple video is derived from expert input and the presentation style is deliberately kept simple and concise as always.
Please like & share the video and subscribe to this channel to express support. I intend to dedicate time and resources to improve the quality & presentation of future content.
Music: www.bensound.com
Even after 2 years this is still usefull. Thank you for this Sir
Best one I found on TH-cam! Thanks for saving my assignment!
I find this very awesome...
I am writing test in 20 minutes.... thank you
You had me at ''simplest explanation ever''
Good thing he had his channel named “Mr. Simplify” ✨
Thanks for clarification on the application! No wonder why I found it strange when I was trying to apply this model on an organization.
I had the same issue. its the perspective!
complex thing explained in a simple way. thank you
thank you! currently studying Porter's Forces for a class and i had a hard time understanding it. this helped out tremendously! :)
You're most welcome Nadine. All the best! :)
😊😊🎉😮🎉😊😂😂🎉🎉 0:00 0:00 😮😢🎉 0:00 😂😢❤❤ 0:00 😮 0:00 ❤🎉😢😢😢🎉😢😂😮😢🎉🎉🎉😢😂🎉😮❤🎉 0:🎉😂🎉😢😢😢😮🎉🎉😢00 🎉😮🎉😢🎉 0:00 🎉😢😮😢❤😮🎉🎉 0:00 ❤ 0:00 🎉 0:00 0:00 😢😮😅🎉🎉😅😢😮😢🎉😮 0:00 🎉🎉 0:00 0:00 😢😂🎉❤🎉 😮😂 🎉0:00 :00 😮😢🎉🎉😢😢😢🎉😮 😮😮🎉🎉😮😢😢😢0:00 🎉😂😮😢😅😮🎉😂😢🎉❤🎉 0:00 😮😂😢😮
that's quite simple I guess. thank you for the lesson
Best explanation ever, although I had to speed it up a bit but the explanation is gold.
Very helpful and concise video, absolutely loved it!
That's great Yujia! 😊
Most simplest explanation ever thx I’m learning this in yr 6
Thanks for this video was explained perfectly 🙌🏻😩🔥
Great explanation, thank you.
You are awesome. Thank you so much for this video.
Perfect. Thank you.
Thanks for the knowledge given without any advertistments
Two hours later watching it again noticed that it is for the industry. not for a specific company.
@@shishyathwa That's correct! :)
Thanks for this :) bettered my understanding!
Fantastic!
Thank you very much. made it very easy to understand the Porter's 5 Forces.
You're welcome again Asraaf! Pls keep supporting!
Amazing, thanks a lot !
Superb explanation. It clarifies everything in the framework. Thanks
You're welcome! Pls keep supporting! 😊
really helpful thank you!
This was a great help.
Am doing a research on Porter's five force and this video help me understand about Porter's Model. THANK YOU...
Thank you! All the best to you!
Great Thanks!
Thanks for the simplicity
You're welcome buddy! 🙂
Super useful , Thanx
Well explained the porter's topic . Thnkqq for this amazing video . As u convert even hard topic to simple , i guess that's why this channel is named as Mr. Simplify
Thnks again 👍
Hello, my friend! Thank you very much for your kind statement. I hope you also check out other tutorials here when you get time, and keep sharing this content. Take care, and cheers! ☺👍
Wonderful explanation...
hey, just want to say thanks, your video helped me understand my assignment (sorry bad english)
Thank you Angga! I feel your English is alright, and will get better in time.
very helpful
Thank you so much very help love you
Good job brother
Thank you sir
nice explanation.
Thank you for this very informative video. It was very clear and easy to understand. I just wanted to ask one question. Even though Porter's model is primarily to gauge profit as in industry rather than in organisations, is it possible to implement or rather switch the profits from being 'financial profits' to 'outcomes profits' in a non-profit organisation? I hope that makes sense. Thank you
Hi Rose. Thank you for your appreciation. Yes, it's certainly possible to do so in the context of a non-profit organisation. In addition to drawing up the 5 forces model to gauge outcomes, you could also think of:
- A SWOT analysis as that's easier to tailor to organisations than industries
- A standard Porter's 5 forces model for the industry specific to the organisation. Ultimately, profitability can also lead to better outcomes and intangibles in a non-profit organisation.
All the best!
Fuck you and your shitty ads.
thanks for information ,nice discribtion.
You're most welcome! 🙂
thanks good explanation and underndstable
🙂👍
How can i critique this video. Any suggestions?
i have a exam tomorrow this video is a life saver thank you
I wish you all the very best for your exams! :)
@@MisterSimplify I aced my exam thank you for the vid
@@ryzz825 Oh brilliant! I am really glad to know this. Most people disappear after their exams, haha! I wish you all the best, and hope you keep up the support!
2 years on and this helps in a way.
My question is how can these 5 forces be used or applied in the mining industry?
Hello! It can be applied to industries of all types. For instance, if the industry relates to coal mining, other forms of energy - like renewable energy become substitutes. One can use the model in a similar way to any industry, and gauge competitiveness.
th-cam.com/video/Jyjbwmbdr6A/w-d-xo.html
Does the Five Forces Model apply to Government or Non-Governmental Organizations and if so how?
Hi Abram. Yes it can be. It depends on the objective of the organisation, whatever be the type of organisation. If the objective is profit (which can then be reinvested in future projects), the model becomes straight forward to apply.
For non-government or not-for-profit organisations, you could also think of:
- A SWOT analysis as that's easier to tailor to organisations than industries
- A standard Porter's 5 forces model for the industry specific to the organisation. Ultimately, profitability can also lead to better outcomes and intangibles in a non-profit organisation.
You could also check out my tutorial on the combination of SWOT and PESTEL for further inspiration.
Hii, I have got a question. If the suppliers' bargaining power is strong, they can control the price. Then it menas this industry is competitive and the competition rivalry is intense right? And the companies need to consider whether to enter the industry.
And also if the bargaining power of customer is strong, it means that the price can be low then the profit is low. so the industry is competitive?
@@meimei8862 Hello Yimei. Apologies for the late response. Yes, you are correct on both accounts.
How does a small customer base affect the power of suppliers? I was rather thinking that if you have fewer customers to supplier to, the lesser your power
Hi Senyo. When I speak about small customers, I am referring to how deep the pockets of the customers go, and not how many customers there are. Let's assume that a person (Fred) running a local shop buys bread from a large chain of national bread suppliers. Fred is technically a customer for the chain. But if the chain raises prices, Fred will have no say in it. Fred's just too small in comparison to the distributor. Hope this clarifies the point. :)
Thank you for the video. One thing got me confused.
Power of supplier: suppliers are powerful when their customers are few.
and in power of customers; customer can control the price if they are small.
So what is the influence of the customer on prices if the size is small?
Hi Basamia. I think your confusion arose from the difference between customers being few and them being small. Small refers to the relative size of the customers. For instance, if I am a reseller of an electronic item on Amazon, and the item is from a big brand, I will buy from the manufacturer and sell it on Amazon for a bit more. In this situation, the supplier is bigger than me (their customer). So my prices will change dependent on their prices. On the other hand, if I sell a commodity which is expensive, but only a selected type of customer buys it, the customer-base is small, and if they change to a different buyer, I will be affected. So it will just be different in different situations. Hope this helps!
@@MisterSimplify so the supplier in the first example is the manufacturer and you might get few customers depending on your price?
thanks a lot for answering my question
@@Basamia Hi Basamia. That's correct. No problem at all! 😊
can i get a example of bargaining power of supplier on stayfree as example pleaseeee
Hello Riya. The concept will stay the same irrespective of product. For a popular product like Stayfree, there will be the pressure of stocking a popular brand. So the product has a dedicated customer base. And that is the biggest USP. Despite a number of substitutes, the brand value outweighs everything else. Hence, the suppliers automatically hold a lot power.
can you please give us some example business that uses five forces model. Thankyou!
Hi Diaz. I think most large organisations would have used the model multiple times. And it's definitely currently in use too. It's difficult to outline a few and elaborate how each one used it. To help you out, I found a link outlining an analysis done on McDonalds and several other companies. The link though has nothing to do with this channel. So I can't vouch for how correct it is: panmore.com/mcdonalds-five-forces-analysis-porters-model
can you do one on marks and weber please
Hi Aubrey. I will add it to the pipeline for sure!
Why 4 of these forces are pointing towards the competitive rivalry? Or why competitive rivalry is at the centre?
Hi Krishan. The factor in the middle indicates the magnitude of rivalry within competitors in the industry. And the 4 enlisted factors contribute to that rivalry. This is a tool to understand how competitive the industry is
Got an ad saying " are you a college dropout or are you thinking about dropping out"??
Oh dear! Pity I can't control the actual product Google chooses to advertise! What was the product being advertised??!!
I will find you and i will thank you.
I hope you do, brother! 🙌🤗
Glad I could help!
Wish you all the best! 👍👍
Every one is describing what this is but no one will tell what will happen if we don't use this model
Hi Muhammad. One can certainly start a business without using this or any other model to gauge competitiveness. But then it would be like rolling a dice. Gambles can often pay off. But they are still gambles nevertheless.
@@MisterSimplify got it
business studies class of 2021 hopaaaaaa
Prizing lol
Better if u explain stuff other than reading out what u hv written
Thanks sir