Exercise 6: Sketch Your Diagram by Hand (or Digitally)
Most people think sketching a five forces diagram is about drawing lines and boxes. But the real skill lies in seeing the market structure clearly enough to represent it. That’s the unspoken foundation—your ability to observe power dynamics, not just draw arrows.
I’ve taught this framework to thousands, and the moment they start drawing with intent, they stop seeing it as a diagram and start seeing it as a window into competition.
This exercise isn’t about perfection. It’s about training your mind to spot where leverage lives—between suppliers and buyers, between substitutes and incumbents. You’ll learn how to make your sketches communicate strategy, not just fit on a page.
By the end, you’ll be able to draw a clean, meaningful five forces diagram by hand or digitally, using real examples from daily life. This is the backbone of strategic clarity.
Start with the Frame: Draw the Box
Begin with a large square. This is your industry space. Inside it, you’ll map the five forces around the central industry.
Think of this as your territory. The square isn’t just a visual gag—it’s a boundary that reminds you: this model applies to one specific market.
Use a pencil first. Light lines make corrections easier. Don’t worry about alignment yet. The goal is to capture the idea, not the design.
Place the Five Forces Around the Box
Position each force on one side of the square. You’ll have:
- Top: Threat of New Entrants
- Bottom: Threat of Substitutes
- Left: Bargaining Power of Suppliers
- Right: Bargaining Power of Buyers
- Center: Competitive Rivalry
The center force is the strongest. It’s the one you’ll analyze most deeply. The others feed into it.
Place them in this order: top, right, bottom, left, center. This layout has become standard because it’s intuitive—your eyes scan it naturally from top to bottom, left to right.
Connect the Dots: Draw Arrows
Draw arrows pointing toward the central box from each side.
These arrows represent influence. The direction matters: forces that push on the industry come from outside and push inward.
Use a dark pen for final lines. Erase light pencil guide marks. The lines should be clean, not wobbly. But don’t stress—this isn’t a drawing exam. It’s a thinking tool.
Add Labels and Simple Notations
Write each force name near its arrow. Use short phrases, not long sentences.
Next to the central force—Competitive Rivalry—add a brief note: “High” or “Medium” or “Low.” You can use color codes later.
If you’re using paper, circle the label for the central force. This makes it stand out. It’s the heart of the model.
Use a Business Model Drawing Tutorial: Digital Tools
If you’re using software like Visual Paradigm, draw the central box first. Then use the built-in shapes to add the five external forces.
Keep the same positions: top, right, bottom, left, center. Most tools have templates for this exact layout. Use them. You’re not learning to draw—your goal is to learn to think.
Pro tip: Use a shared color for all “low” forces (e.g., light gray). Use red for “high” forces. This is a beginner diagram exercise that becomes a visual aid for analysis, not decoration.
Check Your Work: The 5-Point Verification
Before you finish, ask yourself:
- Is the central force clearly at the center?
- Are all five forces present?
- Do arrows point inward?
- Are labels short and clear?
- Does the diagram reflect reality—like a coffee shop or online marketplace?
If you can answer “yes” to all five, you’ve passed the beginner diagram exercise. This isn’t just about matching a textbook. It’s about building a habit of seeing competition in structure.
Practice with a Real Example: The Local Coffee Shop
Imagine a small coffee shop in your neighborhood. Apply the steps:
Draw the square. Place:
- Top: Threat of new entrants — High (low startup cost)
- Right: Buyer power — Medium (many small buyers, low switching cost)
- Bottom: Substitute threat — High (tea, energy drinks, home brewing)
- Left: Supplier power — Low (many coffee bean suppliers)
- Center: Competitive rivalry — High (nearby chains and other cafes)
Now sketch it. Compare with the sample diagram in the appendix. You’ll notice how the labels are short, the arrows point inward, and the central force is emphasized.
This is how you train your brain to see markets as systems, not just places to buy or sell.
Refine with Color and Icons (Optional)
Once the structure is right, add visual cues:
- Red: High threat
- Yellow: Medium threat
- Green: Low threat
Add simple icons:
- Person with a briefcase: for buyers
- Sack of goods: for suppliers
- Door with “new” sign: for new entrants
- Substitution arrow: for substitutes
- Two people fighting: for rivalry
Icons help you remember. They turn abstract forces into tangible images. This is especially useful in a business model drawing tutorial for beginners.
Frequently Asked Questions
Can I use a notebook instead of digital tools?
Yes. A clean sheet of paper is often better. It removes distractions. You’re not trying to impress—your goal is clarity. Every sketch should answer: “What’s the real competition here?”
Do I need to be artistic to draw this?
No. The model isn’t about art. It’s about logic. If you can draw a box and a few lines, you can draw the diagram. The value comes from the questions behind it, not the neatness.
How is this different from a SWOT analysis?
SWOT is internal and external. Five Forces focuses only on external competitive pressures. It’s simpler and more structured for spotting industry threats.
Should I draw all five forces at once?
No. Draw them one by one. Start with the central force—competitive rivalry. Then add the others. This prevents overload and helps you build confidence.
Why is the center force so strong?
Because rivalry is the outcome of all other forces. If suppliers have power, buyers are strong, and substitutes exist, competition intensifies. The central force reflects the sum of external pressures.
What if my diagram looks different from the example?
That’s expected. The example is just a guide. Your version is valid if it answers the same questions: What threatens the business? Who holds leverage? What keeps prices stable?
As long as the structure is intact—five forces around a central box, arrows pointing inward—you’re on the right track.
Every time you sketch, you’re not just drawing. You’re training your mind to see business through a structural lens. This is the real power of a beginner diagram exercise.
Keep going. Make it messy at first. Then refine. The goal isn’t perfection—it’s insight.
