Porter’s Five Forces Framework is a tool for analyzing competition of a business. An “unattractive” the famous five pdf download free is one in which the effect of these five forces reduces overall profitability.
The most unattractive industry would be one approaching “pure competition”, in which available profits for all firms are driven to normal profit levels. The five-forces perspective is associated with its originator, Michael E. This framework was first published in Harvard Business Review in 1979.
Porter refers to these forces as the microenvironment, to contrast it with the more general term macroenvironment. They consist of those forces close to a company that affect its ability to serve its customers and make a profit. A change in any of the forces normally requires a business unit to re-assess the marketplace given the overall change in industry information. The overall industry attractiveness does not imply that every firm in the industry will return the same profitability.