Editing Porter's five forces analysis (section)

==Usage==
Strategy consultants occasionally use Porter's five forces [[Conceptual framework|framework]] when making a qualitative evaluation of a [[firm]]'s strategic position. However, for most consultants, the framework is only a starting point and [[value chain]] analysis or another type of analysis may be used in conjunction with this model.<ref>{{cite web | url=http://flevy.com/blog/introduction-to-strategy-development-and-strategy-execution/ | title=Introduction to Strategy Development and Strategy Execution | publisher=Flevy | date=21 October 2014 | access-date=2 November 2014 | author=Tang, David}}</ref> Like all general frameworks, an analysis that uses it to the exclusion of specifics about a particular situation is considered naïve {{by whom|date=December 2018}}.

According to Porter, the five forces framework should be used at the line-of-business industry level; it is not designed to be used at the industry group or industry sector level. An industry is defined at a lower, more basic level: a market in which similar or closely related products and/or services are sold to buyers (see [[industry information]]). A [[firm]] that competes in a single industry should develop, at a minimum, one five forces analysis for its industry. Porter makes clear that for diversified companies, the primary issue in [[corporate strategy]] is the selection of [[Industry (economics)|industries]] (lines of business) in which the company will compete. The average ''Fortune Global 1,000'' company competes in 52 industries.<ref>{{Cite web|url=https://courses.lumenlearning.com/boundless-management/chapter/external-inputs-to-strategy/|title=External Inputs to Strategy {{!}} Boundless Management|website=courses.lumenlearning.com|language=en-US|access-date=2017-12-06}}</ref>