History
In 1979, Harvard Business School professor Michael E. Porter developed the five forces model. It was his first article for the Harvard Business review titles “How Competitive Forces Shape Strategy”. It was later detailed in his book on Competitive strategy. This model aimed to provide a new way to use effective strategy to identify, analyze and manage external factors in an organization’s environment.
Porter’s work has been recognized as extremely important in the field. Despite criticisms regarding its applicability in a much altered world, it remains one of the most widely used methods of industry analysis.