<P> Porter 's Five Forces Framework is a tool for analyzing competition of a business . It draws from industrial organization ( IO ) economics to derive five forces that determine the competitive intensity and , therefore , the attractiveness ( or lack of it ) of an industry in terms of its profitability . An `` unattractive '' industry 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. Porter of Harvard University . This framework was first published in Harvard Business Review in 1979 . </P>
<P> Porter 's Five Forces Framework is a tool for analyzing competition of a business . It draws from industrial organization ( IO ) economics to derive five forces that determine the competitive intensity and , therefore , the attractiveness ( or lack of it ) of an industry in terms of its profitability . An `` unattractive '' industry 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. Porter of Harvard University . This framework was first published in Harvard Business Review in 1979 . </P>
who created the five forces model of industry profitability
who created the five forces model of industry profitability
Michael E. Porter
Michael E. Porter