Checkpoint: Creating Your First Simple Five Forces Table

There’s no magic trick. No shortcut. The truth is: most beginners try to analyze the entire sector at once, only to end up overwhelmed, under-informed, or repeating the same generic points.

You don’t need to be an expert to see the structure of competition. You just need to know what to look for and how to organize it.

I’ve seen students overcomplicate this from day one—trying to write paragraphs instead of building a simple business analysis chart. The real win comes when you stop chasing complexity and start mastering clarity.

Here’s what you’ll gain: a single, clean strategy summary sheet that shows the big picture at a glance. It’s not just a template—it’s your first real tool for making decisions based on evidence, not guesswork.

Why One Table Changes Everything

After going through each force individually, you’ll now see how they connect. The power of this step lies not in doing more—but in seeing more clearly.

Each force reveals a different angle of competition. When you combine them into one simple business analysis chart, you’re not just listing threats and opportunities. You’re building a snapshot of market health.

Think of it like a weather forecast. One piece of data—temperature—tells you nothing. But when you combine wind, humidity, pressure, and cloud cover, you can actually predict what’s coming.

Your five forces worksheet beginner table does the same. It turns five raw insights into a single, coherent picture of risk and opportunity.

How to Build Your First Five Forces Table

Start by drawing a simple grid with five rows and two columns:

• Column 1: The five forces (in order)
• Column 2: Your assessment (brief, 1–3 sentences per force)

Here’s what your table should look like:

Force	Assessment
1. Competitive Rivalry	High. Multiple established brands compete on price and convenience. No single leader dominates.
2. Threat of New Entrants	Low. High startup costs, strong brand loyalty, and regulatory hurdles make entry difficult.
3. Bargaining Power of Buyers	Medium. Customers have options, but switching costs are low and loyalty is weak.
4. Bargaining Power of Suppliers	Low. Inputs are widely available. Substitutes exist, and suppliers are fragmented.
5. Threat of Substitutes	High. Alternatives like bottled water, tea, or home filtration systems are growing in popularity.

Now, step back and ask: Does this make sense? Do the forces add up to a market that’s stable, risky, or promising?

That’s the real value of a strategy summary sheet. Not the table itself—but the thinking it reveals.

Where Most Students Go Wrong (And How to Fix It)

Let’s be clear: the most common mistake isn’t getting the forces wrong. It’s answering with vague phrases like “high competition” or “some pressure.”

Good analysis is specific. It names the drivers.

Instead of writing “high rivalry,” ask: Why is rivalry high?

Is it because there are many players? Because products are similar? Because prices are constantly discounted?

That’s where your earlier exercises come in. You’ve already practiced identifying real examples from your local coffee shop, grocery store, or even online platforms.

Quick Fix: Turn “High” into “Why?”

When you write your assessment, always answer two questions:

1. What is the level of pressure? (High, Medium, Low)
2. What’s the main reason? (Be specific—name a condition, behavior, or trend)

For example:

• High rivalry because many chains offer the same core product, and promotions are frequent.
• Low supplier power due to multiple local farms supplying organic milk.

These aren’t opinions. They’re observations based on your analysis.

Using Your Table for Real-World Insight

You’ve built the table. Now what?

Look for the forces that are strongest. That’s where the real pressure lies.

In our coffee shop example, both rivalry and substitutes are high. That tells a simple story: customers are fickle, and alternatives are gaining ground.

So what should a real business do?

• Focus on brand differentiation—maybe specialty brewing or community events.
• Invest in loyalty programs to reduce buyer power.
• Partner with local suppliers to build a story of sustainability.

That’s how a simple five forces worksheet beginner table becomes a real strategy summary sheet. It’s not about perfection. It’s about clarity and direction.

How to Keep Improving Your Analysis

Every strong analysis starts with a weak one. That’s okay.

After you complete your first table, go back and ask:

1. Could any force be better explained?
2. Did I use specific examples from my observation?
3. Is there a contradiction? (e.g., high rivalry but low threat of new entrants? That might signal something’s off.)

Revisiting your work sharpens your judgment. Over time, you’ll begin to spot patterns—like how high buyer power often means low switching costs, or how strong suppliers can lead to higher prices.

Each time you refine your simple business analysis chart, you’re not just improving a document. You’re training your mind to think like a strategist.

Frequently Asked Questions

How do I know when to use “high,” “medium,” or “low” for each force?

Use “high” when the pressure is intense—like many competitors or strong alternatives. Use “low” when the influence is minimal. “Medium” is for when the effect is noticeable but not dominant. Base it on what you observed in your earlier exercises.

Can I use this table for any industry?

Absolutely. Whether you’re analyzing a local café, a streaming service, or a grocery chain, the structure works the same. The content changes—but the logic stays consistent.

Should I include numbers or percentages in the table?

No. This isn’t a financial report. Focus on qualitative insights: the nature of competition, supplier concentration, buyer behavior. Numbers can come later—but not at this stage.

Can I add more than one point per force?

Yes—but keep it tight. One or two clear, specific points per force are enough. For beginners, long paragraphs are a trap. If you’re writing more than three lines, you’re trying to say too much.

How do I make my table look professional for a report or presentation?

Use consistent formatting. Keep the same level of detail. Use bold for headings, and write assessments in plain, active language. A clean, readable table is more powerful than a flashy one.

What if I’m unsure about one force?

That’s normal. Mark it as “unclear” or “needs research.” Then go back to your notes or observation. Use your five forces checklist to guide you. The goal isn’t to be perfect—it’s to be honest and thorough.

Now that you’ve created your first five forces worksheet beginner table, you’re no longer just learning theory. You’re applying it. The next step? Use this template to analyze a real business you know well.