Guidelines for applying Porter's five forces framework: a set of industry analysis templates

Purpose – The purpose of this paper is to provide practitioners and students a practical yet comprehensive set of templates for applying Michael Porter's five forces framework for industry analysis. Design/methodology/approach – Based on experiences with practicing managers, small business owners, industry analysts, academics, and students, a set of industry analysis templates that systematically guides an analyst through a comprehensive assessment of the five forces is presented with the following: copies of the templates themselves, descriptions of their structure and use, an example of a completed template (spectator sports industry), and a discussion of possible modifications and extensions. Findings – The industry analysis templates described in this paper retain the comprehensiveness of Porter's framework but in a format much more student/manager-oriented using graphics, visual cues, a uniform structure, and straightforward descriptions of concepts. Template users show evidence of deeper strategic insights and have a sophisticated tool for future analysis. Practical implications – Managers, analysts, students, and others wanting robust industry analysis are provided with a comprehensive, structured, and practical set of templates to use in assessing an industry using the five forces framework. Originality/value – Leading strategic management texts and other sources provide no comprehensive, systematic, and robust format for conducting a five forces analysis of an industry. The set of industry analysis templates described in this paper provides a visually compelling, user-friendly format that can assist those analyzing industries gain important strategic insights not only into industry drivers, but also important competitive advantages for individual firms.