{"id":1373,"date":"2026-02-25T10:40:27","date_gmt":"2026-02-25T10:40:27","guid":{"rendered":"https:\/\/skills.visual-paradigm.com\/ru\/docs\/porters-five-forces-for-beginners\/five-forces-beginner-project\/personal-business-analysis-exercise\/"},"modified":"2026-02-25T10:40:27","modified_gmt":"2026-02-25T10:40:27","slug":"personal-business-analysis-exercise","status":"publish","type":"docs","link":"https:\/\/skills.visual-paradigm.com\/ru\/docs\/porters-five-forces-for-beginners\/five-forces-beginner-project\/personal-business-analysis-exercise\/","title":{"rendered":"Mini Project 1: Pick a Business You Know Well"},"content":{"rendered":"<p>When I first started guiding teams through competitive strategy, I noticed something surprising: most people don\u2019t struggle with the theory\u2014they struggle to see the forces in action. The moment you stop thinking abstractly and pick a business you\u2019ve actually used, everything clicks. This is where your real learning begins.<\/p>\n<p>This exercise is not about memorizing definitions. It\u2019s about shifting from passive learning to active observation. You\u2019ll use a company you know well\u2014your local coffee shop, a favorite e-commerce brand, or even a school cafeteria. The goal is simple: apply five forces to real example with clarity, confidence, and real insight.<\/p>\n<p>By the end, you\u2019ll have built a working analysis that shows how competition, customers, suppliers, and alternatives shape a real business. This is the foundation of strategic thinking. You\u2019ll also develop a habit of looking deeper\u2014beyond prices and promotions\u2014into the hidden forces at play.<\/p>\n<h2>Step 1: Choose a Business You Know Well<\/h2>\n<p>Start with a company you interact with regularly. It doesn\u2019t need to be big or famous. What matters is that you\u2019ve used its product or service at least three times and can answer basic questions like:<\/p>\n<ul>\n<li>What do they sell?<\/li>\n<li>What makes you choose them over others?<\/li>\n<li>How often do you use them?<\/li>\n<\/ul>\n<p>Examples: A neighborhood bakery, a mobile app you use daily, a campus bookstore, or a laundry service on your street. Choose one that feels familiar and manageable.<\/p>\n<p>Why this works: You\u2019re not analyzing a case study\u2014you\u2019re investigating a real experience. That means you&#8217;re already partway through the analysis. Your observations are data. Your feelings about pricing or wait times? That\u2019s insight.<\/p>\n<h2>Step 2: Apply the Five Forces One by One<\/h2>\n<p>Use this checklist to guide your thinking for each force. Be specific. Avoid vague statements like \u201ccompetition is strong.\u201d Instead, ask: <em>Who exactly is competing? How do they differ? What\u2019s their pricing? How do customers choose between them?<\/em><\/p>\n<h3>1. Competitive Rivalry<\/h3>\n<p>Identify who else offers the same product or service. Ask:<\/p>\n<ul>\n<li>Are there local stores, online platforms, or apps competing with this business?<\/li>\n<li>Is the market fragmented (many small players) or concentrated (few big ones)?<\/li>\n<li>Do customers switch easily between options? What\u2019s the cost of switching?<\/li>\n<\/ul>\n<p>Tip: Think about what would happen if your local shop closed. Would customers go to one main chain, or split among several?<\/p>\n<h3>2. Threat of New Entrants<\/h3>\n<p>Consider how hard it would be for a new competitor to enter the market. Ask:<\/p>\n<ul>\n<li>Does this business require a large investment to start (e.g., equipment, licenses, real estate) ?<\/li>\n<li>Are there strong brand loyalties or customer lock-in?<\/li>\n<li>Are there patents, exclusive contracts, or regulatory barriers?<\/li>\n<\/ul>\n<p>Example: Opening a new coffee shop in a busy downtown strip is hard due to rent, permits, and established chains. But launching a mobile delivery app might be easier.<\/p>\n<h3>3. Bargaining Power of Suppliers<\/h3>\n<p>Who provides the inputs? Ask:<\/p>\n<ul>\n<li>Do they supply essential ingredients, materials, or software?<\/li>\n<li>Are there only a few suppliers? Can the business switch easily?<\/li>\n<li>If prices rise, can the business pass them on to customers?<\/li>\n<\/ul>\n<p>Example: A coffee shop depends on a single roasted bean supplier. If that supplier raises prices, the shop might absorb the cost, or pass it on\u2014but only if customers don\u2019t react.<\/p>\n<h3>4. Bargaining Power of Buyers<\/h3>\n<p>Who pays? Consider:<\/p>\n<ul>\n<li>Do customers have many choices?<\/li>\n<li>Do they buy in large volumes or in bulk?<\/li>\n<li>Is the product commoditized (e.g., generic coffee) or unique (e.g., a specialty latte)?<\/li>\n<\/ul>\n<p>Example: If you\u2019re a student buying coffee every morning, you may not compare prices much. But if your school buys 100 cups a day, the buyer has more power.<\/p>\n<h3>5. Threat of Substitutes<\/h3>\n<p>What alternatives meet the same need? Ask:<\/p>\n<ul>\n<li>Could customers use something else instead?<\/li>\n<li>Is the substitute cheaper, faster, or more convenient?<\/li>\n<li>Is the cost of switching low?<\/li>\n<\/ul>\n<p>Example: A coffee shop might be threatened by energy drinks, tea, or even a cold brew made at home. If a substitute is just as satisfying and cheaper, the threat is high.<\/p>\n<h2>Step 3: Create Your Five Forces Summary Table<\/h2>\n<p>Use this simple table to organize your findings. Keep it clear and concise. You can do this by hand or in a digital tool like Google Docs or Excel.<\/p>\n<table>\n<tbody>\n<tr>\n<th>Force<\/th>\n<th>Key Factors<\/th>\n<th>Impact Level<\/th>\n<\/tr>\n<tr>\n<td>Competitive Rivalry<\/td>\n<td>Limited to 3 local cafes; chain dominates. High price sensitivity.<\/td>\n<td>High<\/td>\n<\/tr>\n<tr>\n<td>Threat of New Entrants<\/td>\n<td>High rent, permits, and brand recognition act as barriers.<\/td>\n<td>Low<\/td>\n<\/tr>\n<tr>\n<td>Supplier Power<\/td>\n<td>Relies on 1 specialty coffee roaster. No direct alternatives.<\/td>\n<td>Medium<\/td>\n<\/tr>\n<tr>\n<td>Buyer Power<\/td>\n<td>Individual customers have low power; no bulk buying.<\/td>\n<td>Low<\/td>\n<\/tr>\n<tr>\n<td>Substitute Threat<\/td>\n<td>Energy drinks, homemade coffee, tea. Low switching cost.<\/td>\n<td>Medium<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p>Use this to compare forces. The higher the impact, the more it shapes the business\u2019s strategy.<\/p>\n<h2>Step 4: Reflect and Learn<\/h2>\n<p>Now, ask yourself:<\/p>\n<ul>\n<li>Which force is strongest? Why?<\/li>\n<li>Which one is weakest? Does that surprise you?<\/li>\n<li>If you were the owner, what would you do to reduce risk from the top force?<\/li>\n<\/ul>\n<p>Real insight comes not from the numbers, but from asking the right questions. If buyer power is low, the business can raise prices. But if substitution is high, they must innovate or differentiate.<\/p>\n<p>This is your first real business project activity. You didn\u2019t just read about competition\u2014you experienced it. You didn\u2019t just fill a template\u2014you thought like a strategist.<\/p>\n<h2>Frequently Asked Questions<\/h2>\n<h3>How do I know if I\u2019m applying five forces to real example correctly?<\/h3>\n<p>Ask: Do my answers relate to actual decisions the business makes? If you say &#171;buyers have high power&#187; but the business raises prices every year, your analysis may be off. Look for real behavior\u2014pricing, product variety, advertising\u2014rather than assumptions.<\/p>\n<h3>Can I use a big company like Amazon or Starbucks for this exercise?<\/h3>\n<p>Yes, but focus on one aspect. For example, analyze the \u201clocal coffee shop\u201d arm of Starbucks, or Amazon\u2019s \u201csame-day delivery\u201d service. The goal is to apply the model to a defined segment, not the whole company.<\/p>\n<h3>What if I don\u2019t see clear competition or substitutes?<\/h3>\n<p>Don\u2019t panic. Look deeper. A coffee shop might seem unique, but substitutes exist: tea, energy drinks, homemade coffee. Competition could include nearby bakeries offering drinks. Dig into customer behavior\u2014what do they actually want? That reveals hidden forces.<\/p>\n<h3>How detailed should my answers be?<\/h3>\n<p>One to two clear sentences per point. Be specific. Instead of &#171;suppliers matter,&#187; say: &#171;The bakery uses a single flour supplier. If that supplier raises prices, the bakery must absorb the cost or raise prices\u2014potentially losing customers.&#187;<\/p>\n<h3>Is this just for small businesses?<\/h3>\n<p>No. The model works for any business, big or small. The key is to ground your analysis in reality. A student analyzing a university cafeteria gains insights just as valuable as a manager analyzing a global brand.<\/p>\n<h3>Can I do this exercise again with a different business?<\/h3>\n<p>Yes! Doing this multiple times is the best way to build fluency. Try a grocery store next, then a mobile app. Each one teaches you something new about how markets work.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>When I first started guiding teams through competitive strategy, I noticed something surprising: most people don\u2019t struggle with the theory\u2014they struggle to see the forces in action. The moment you stop thinking abstractly and pick a business you\u2019ve actually used, everything clicks. This is where your real learning begins. This exercise is not about memorizing [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":1372,"menu_order":0,"template":"","meta":{"_acf_changed":false,"inline_featured_image":false,"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-5)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"ast-content-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"tablet":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""},"mobile":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center center","background-size":"auto","background-attachment":"scroll","background-type":"","background-media":"","overlay-type":"","overlay-color":"","overlay-opacity":"","overlay-gradient":""}},"footnotes":""},"doc_tag":[],"class_list":["post-1373","docs","type-docs","status-publish","hentry"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Personal Business Analysis Exercise<\/title>\n<meta name=\"description\" content=\"Complete your first real-world strategy analysis with this beginner-friendly personal business analysis exercise. 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