| The Force | Impact | Root Causes | |||
|---|---|---|---|---|---|
| IF threat of entry |  |
profitability
|
 |
because
|
WTP
Prices
Costs |
| IF threat of entry | |
profitability
|
|
because
|
WTP
Prices Costs |
| IF supplier power | |
profitability
|
|
because
|
Costs
|
| IF supplier power | |
profitability
|
|
because
|
Costs
|
| IF buyer power | |
profitability
|
|
because
|
Prices
|
| IF buyer power | |
profitability
|
|
because
|
Prices
|
| IF substitutes | |
profitability
|
|
because
|
WTP
Prices
|
| IF substitutes | |
profitability
|
|
because
|
WTP
Prices |
| IF rivalry | |
profitability
|
|
because
|
WTP
Prices
Costs |
| IF rivalry | |
profitability
|
|
because
|
WTP
Prices Costs |
| IF complements | |
profitability
|
|
because
|
WTP
Prices |
| IF complements | |
profitability
|
|
because
|
WTP
Prices
|
Adapted from Michael E. Porter, “The Five Competitive Forces that Shape Strategy,” Harvard Business Review 86 (January 2008): 78–93.
Adapted from Joan Magretta, Understanding Michael Porter: The Essential Guide to Competition and Strategy (Boston: Harvard Business School Press, 2012), p. 41.