|Purpose : To create a better insight into market conditions
Field: Business, personal and political fields
“Patterns of change“
>>>Method 1: Basic Porter 5-forces analysis
Players: 2 to 12 | Duration: 30 – 120 minutes | Level: 3 (out of 5)
Last update: 23/10/2012
- A large surface to place a porter 5 forces model and the relevant cards.
- Select a market that you would like to discuss and explore (e.g. the mountain bike industry in Norway). Write the selected market down on a post-it note and place it in the center of the table.
- Draw five sections/forces around the market:
- “Threat of new competition”
- “Threat of substitute products or services”
- “Bargaining power of buyers”
- “Bargaining power of suppliers”
- “Intensity of competitive rivalry”
- Divide the group into smaller teams and allocate each team at least one section/force.
- Look at the selected market from the perspective of your assigned section/force (e.g. “bargaining power of buyers”) and describe the current market situation. Write down the results on post-it notes and place them in the corresponding section/force.
- Discuss each team’s result as a group. Reach a consensus about which post-it notes are the most applicable to the current situation.
- You should now have a complete overview of the current market situation in relation to the 5 Porter forces.
- Divide the group again into smaller teams and and allocate each team at least one section/force.
- It’s is preferable to use one package of STEEP cards for each section/force (you can use one package for all of the sections/forces however it’s possible that some cards will be applicable to multiple sections/forces).
- For each section/force:
- Select cards that influence the sections/force and place them in the relevant section/force.
- Discuss and reach a consensus about how the section/force is affected by this card (you could use the patterns of change card as a starting point for your discussion).
- Write down the result on a separate piece of paper and place it next tot the card.
- You should now have a complete overview of the current porter 5 forces market situation along with the relevant STEEP external forces and influencing factors.
- Discuss each team’s result as a group. Use the insights to develop or adjust your market strategies.
- After positioning the STEEP cards add additional market forces of your own choice that are relevant to the market.