When you’re running a business, especially online, growth often feels like a sprint: more leads, more sales, more content, more everything.
But growing without a strategy can feel like pouring water into a bucket with holes.
That’s where Porter’s Five Forces comes in.
It’s not just a framework for MBA students—it’s a surprisingly practical tool for everyday entrepreneurs who want to build something sustainable. Something strong. Something that actually lasts.
Here’s how to use it to grow your business with more clarity—and less chaos.
1. Competitive Rivalry: Know Who You’re Really Competing With
Every niche has competitors—even the weird ones. The question is: how fierce is the competition?
If you’re constantly fighting for attention, undercutting on price, or getting overlooked, you’re probably in a crowded space.
What to do:
- Take a few minutes to audit your closest competitors. What do they offer? What do their customers rave or complain about?
- Then ask: “Why would someone choose me over them?” Get crystal clear on your unique value.
Differentiation isn’t optional—it’s your survival tool. You don’t need to be the biggest, just the most distinct.
2. Threat of New Entrants: Make It Hard to Copy You
New businesses pop up every day. Some might even copy your exact offer. If it’s easy to replicate what you’re doing, you’ve got a problem.
What to do:
- Start building what we call a “moat.” That could be your brand personality, a loyal audience, killer customer experience, or proprietary content.
- Invest in assets others can’t steal—like long-form SEO content, automations, or a raving email list.
You want to be the business that’s not just good—but tough to replace.
3. Bargaining Power of Customers: Don’t Let Them Dictate Everything
If customers can bounce to a cheaper option with a single Google search, they’re in control. That can put real pressure on your margins.
What to do:
- Create offers with built-in retention—memberships, content libraries, loyalty perks.
- And deliver value that goes beyond price. That might mean quicker support, personal touches, or ongoing education.
When your customers want to stick around, you can grow without constantly chasing new leads.
4. Bargaining Power of Suppliers: Stay Flexible, Stay in Charge
Maybe you rely on a specific manufacturer, platform, or contractor. What happens if they change the rules—or disappear?
What to do:
- Build backup options. If you use one tool for email, get familiar with a second. If you rely on a freelancer, cross-train someone else.
- Document your processes. That way, if someone or something goes missing, you’re not stuck.
The more adaptable your business is, the more it can grow without bottlenecks.
5. Threat of Substitutes: Don’t Get Replaced by Something Simpler
Let’s be honest: most people don’t care about your exact offer. They just want their problem solved. If a faster, cheaper solution comes along, they might jump.
What to do:
- Figure out the deeper problem you solve. Are you helping someone save time, feel confident, or avoid stress? Focus on delivering that.
- And educate your audience. Show them why your method works better—even if it’s not the cheapest or flashiest.
The best businesses aren’t just useful. They’re trusted.
Final Thought: Growth Is a Strategy, Not a Guess
Porter’s Five Forces isn’t just a bunch of theory. It’s a lens to view your business clearly.
It helps you ask smarter questions, like:
- “Where am I vulnerable?”
- “What could knock me off course?”
- “How do I build something that grows on my terms?”
You don’t have to overhaul everything overnight. Just start with awareness—and keep improving one force at a time.
Because the strongest businesses don’t grow by accident. They grow on purpose.
