The Five Forces Checklist You’ll Use Repeatedly
When I first learned Porter’s Five Forces, I spent hours drawing arrows and scribbling notes — only to realize I wasn’t solving anything. The real breakthrough came when I stopped trying to memorize and started following a simple, repeatable routine. That routine? A checklist.
Yes, the single most valuable thing I’ve taught in every workshop, from classrooms to startup incubators, is not a theory. It’s a repeatable process. You don’t need to reinvent the wheel every time you analyze a market. You just need a reliable checklist.
This one’s been refined over 20 years of teaching and advising across industries — from fast food chains to SaaS startups. It’s built for beginners who want to avoid common missteps and focus on what truly matters: clarity, consistency, and insight.
Every time you analyze a new business or industry, use this five-forces checklist. It’s your anchor. Your guide. Your go-to tool for turning confusion into confidence.
Why a Checklist Works Better Than Memory
Let’s be honest: memorizing the five forces is easy. Remembering how to apply them in real situations? That’s hard.
I’ve seen students name all five forces perfectly — only to miss the fact that “buyer power” isn’t just about price. It’s about volume, loyalty, switching costs, and even information control.
That’s why this checklist isn’t a list of definitions. It’s a structured, repeatable process. It forces you to ask the right questions at the right time — no guessing, no skipping.
It turns analysis from a guessing game into a disciplined habit. And that’s what separates beginners from those who truly understand strategy.
How to Use This Checklist: A Step-by-Step Guide
Use this checklist every time you begin a competitive analysis. Whether you’re working on a school project, a business case, or your own startup idea, this is your foundation.
Step 1: Define the Industry Clearly
Before you analyze anything, ask: What exactly is the market I’m studying?
Be specific. Not “fast food.” Not “tech.” But “plant-based fast food delivery in urban centers.” That specificity changes everything.
Ask yourself:
- What product or service is being offered?
- Who are the customers?
- What geographic region does this cover?
Without a clear definition, the rest of your analysis becomes noise.
Step 2: Evaluate Competitive Rivalry
How many competitors are there? Are they similar in size? Are prices stable, or is there constant discounting?
Ask:
- Are there many players, or is the market dominated by a few?
- Is customer loyalty high, or do people switch frequently?
- Are there strong brands or deep discounts?
If prices are constantly dropping, or there are dozens of new eateries opening each month, rivalry is strong. This puts pressure on profit.
Step 3: Analyze Supplier Power
Who supplies your key inputs? If those suppliers are few, or your business depends on unique ingredients, you’re at risk.
Ask:
- Are there few suppliers, or could I switch easily?
- Do they control critical materials (e.g., rare earth metals, organic ingredients)?
- Can they raise prices without losing your business?
If your coffee shop relies on a single roaster for its beans, and that roaster has no competition, your power is weak.
Step 4: Assess Buyer Power
Who’s on the other side of the transaction? Are they big companies, or individual customers?
Ask:
- Do buyers purchase in bulk?
- Can they easily switch to another brand?
- Do they have strong bargaining leverage?
If you’re selling to a large retailer, they can demand lower prices or better terms. But if you’re selling single coffee cups to regular customers, you have more control.
Step 5: Evaluate Threat of New Entrants
How easy is it for a new player to enter this market?
Ask:
- Are there high startup costs (e.g., factory, permits, IP)?
- Is there brand loyalty or customer lock-in?
- Do existing players have exclusive contracts or patents?
Low barriers mean new entrants can quickly disrupt the market. High barriers protect incumbents.
Step 6: Identify Threat of Substitutes
What alternatives could meet the same customer need?
Ask:
- Is there a cheaper or better way to solve this problem?
- Could a different product fulfill the same purpose?
- Is this a commodity, or is it unique?
Instead of soda, people might drink sparkling water. Instead of a physical gym, they might use home workouts. That’s substitution in action.
Apply the Checklist: Your Competitive Analysis Worksheet
Here’s a printable version of the checklist you can use again and again. Keep it in your notebook, print it, or save it digitally. It’s your strategic backbone.
| Force | Key Questions | How to Score (Low/Medium/High) |
|---|---|---|
| 1. Competitive Rivalry | How many players? Are prices stable? Is switching easy? | Low / Medium / High |
| 2. Supplier Power | Few suppliers? High switching cost? Control key inputs? | Low / Medium / High |
| 3. Buyer Power | Big buyers? Bulk purchases? Easy to switch? | Low / Medium / High |
| 4. Threat of New Entrants | High startup costs? Brand loyalty? Patents? | Low / Medium / High |
| 5. Threat of Substitutes | Are alternatives available? Can they meet the same need? | Low / Medium / High |
Use this table to document your analysis. Mark each force as Low, Medium, or High — not vague terms like “strong” or “weak.” That’s how you build consistency.
Once complete, look for patterns. If three or more forces are high, the industry is likely not profitable. If only one is high, there may be opportunity.
Real-World Example: The Local Coffee Shop
Let’s apply the checklist to a real business: a small, independent coffee shop in a college town.
Competitive Rivalry: High — There are 6 other shops within a 5-minute walk, with similar pricing and product offerings.
Supplier Power: Medium — They source beans from one local roaster, but other suppliers are available.
Buyer Power: Low — Customers are mostly students who prefer this shop for its vibe and loyalty rewards.
Threat of New Entrants: Medium — Low startup costs, but strong brand loyalty and fixed storefronts are barriers.
Threat of Substitutes: High — People can replace coffee with tea, energy drinks, or even just water.
Insight: While rivalry and substitutes are strong, the shop’s niche loyalty protects it. The real risk? If a big chain opens nearby, buyer power could shift.
This is how a simple checklist turns a hunch into a real insight.
Why This Checklist Works for Beginners
The beauty of this five forces checklist is that it’s not about perfection. It’s about progress.
You don’t need to know everything to get started. Just follow the steps. Ask the questions. Write down your answers.
Over time, you’ll start seeing patterns. You’ll recognize when a market is saturated. You’ll know when a product is vulnerable to replacement. That’s strategic thinking — built one question at a time.
And yes, this is the same framework I use in consulting — but adjusted so a beginner can walk through it step by step.
Frequently Asked Questions
Can I use this checklist for any business, even if I don’t know much about it?
Absolutely. The checklist is designed to work even with limited information. Start with what you know — then identify gaps. Ask, “What do I need to learn to answer this question?”
Beginner-friendly. Realistic. Practical.
How often should I revisit the checklist when analyzing a business?
Use it once at the beginning. Then revisit it after you gather new data — like after a major competitor launches, or a new regulation hits. It’s not a one-time exercise. It’s a living tool.
Is this checklist suitable for school projects and business reports?
Yes. This competitive analysis worksheet is ideal for assignments, presentations, or internal planning. It gives structure, ensures completeness, and shows depth.
Teachers and managers appreciate a clear, repeatable process. This is that.
Can I simplify this for a quick analysis?
Yes — but only after you’ve used it fully a few times. The checklist helps train your mind. Once you understand the logic, you can do faster assessments. But never skip the steps.
Speed comes from mastery, not shortcuts.
What if I get conflicting answers for one force?
That’s normal. It means the market is complex. In such cases, note both sides — for instance, “High rivalry due to many small players, but low due to strong brand loyalty.”
Conflicting signals often mean the market is in transition. That’s where your analysis becomes most valuable.
How do I know if my analysis is good enough?
Ask: Did I answer every question in the checklist? Did I use real examples? Did I explain my reasoning?
If yes — you’re on the right track. This strategic checklist for beginners isn’t about being perfect. It’s about being systematic.
