The Industry Diagnostics method uses Michael Porter’s Five Forces Framework to better understand one’s industry and discover opportunities for innovation early on.
Once you have identified the key aspects of the industry, you can see the current health of the industry through them. Whenever weaknesses have developed in an industry over time, the opportunity for new concepts to penetrate is great.
The five forces analyzed here are:
– The threat of potential market entry by new competitors
– The threat of substitution by other products and services
– The power of customers and users of the products
– The power of suppliers in their own industry
– The intensity of competition between competitors
The extended version of Porter’s Five Forces are the Six Forces, which additionally include the complementors of an industry into the system.