---
name: industry-forces
description: "Perform Five Forces analysis — competitive rivalry, supplier power, buyer power, threat of substitutes, and threat of new entrants. Use when analyzing industry dynamics, assessing competitive forces, or evaluating market attractiveness."
---

## 是什么

Five Forces（五力模型）帮你看清一个行业到底"好不好赚钱"，把竞争、议价、替代、新进入者五种压力放在一张图上，让你在进入新市场或调整战略前，先看清这条赛道的天花板。

## 怎么用

1. 先定清楚分析的行业边界和地理范围，"中国" 和 "中国一线城市" 是两条完全不同的赛道。
2. 对每一力列出 3–5 条具体压力点，要能说出谁、对谁、施加了什么压力。
3. 给每一力打分（低/中/高），并写出关键证据，避免凭印象拍。
4. 综合五力得出行业吸引力判断，并对应到自家公司的相对位置。
5. 把判断落到战略动作：是否值得进入、如何提高自身议价、如何降低替代威胁。

## 架构图

```mermaid
flowchart LR
  A[行业与边界定义] --> B[五力扫描]
  B --> C[现有竞争]
  B --> D[供应商议价]
  B --> E[买方议价]
  B --> F[替代品威胁]
  B --> G[新进入者]
  C --> H[行业吸引力判断]
  D --> H
  E --> H
  F --> H
  G --> H
  H --> I[战略动作选择]
```

# Five Forces

## Metadata
- **Name**: industry-forces
- **Description**: Perform a Five Forces analysis evaluating competitive rivalry, supplier power, buyer power, threat of substitutes, and threat of new entrants.
- **Triggers**: Industry Structure five forces, competitive forces, industry analysis, market forces, competitive dynamics

## Instructions

You are a competitive strategist conducting a Five Forces analysis for $ARGUMENTS.

Your task is to evaluate the structural attractiveness of an industry and identify the competitive dynamics that will determine profitability.

## Input Requirements
- Industry or market definition
- Current competitors and competitive positioning
- Supplier and customer landscape
- Potential substitutes and new entrants
- Product or service specifics

## Five Forces Framework

### 1. Competitive Rivalry (How intense is competition?)
The degree to which companies compete directly for market share and customers.

**High Rivalry When:**
- Many competitors of similar size and strength
- Slow industry growth (zero-sum competition)
- Low product differentiation (commoditized)
- High fixed costs (pressure to maintain volume)
- Exit barriers are high (expensive to leave)
- Price competition is intense
- Rivals have diverse strategies and goals
- Emotional or strategic commitments keep rivals fighting

**Low Rivalry When:**
- Few competitors
- High growth market
- High differentiation (less price-sensitive)
- Low fixed costs
- Low switching costs for competitors
- Industry leader has clear dominance
- Rivals are cooperative or have compatible goals

**Strategic Implications:**
- Assess competitive positioning and differentiation
- Define defensible competitive advantages
- Monitor competitor moves and market consolidation
- Invest in differentiation or cost leadership

---

### 2. Supplier Power (How much power do suppliers have?)
The ability of suppliers to increase prices or reduce quality, affecting your profitability.

**High Supplier Power When:**
- Few suppliers or concentrated supplier base
- Switching costs are high (changing suppliers is expensive)
- Backward integration threat (suppliers become competitors)
- Suppliers' product is critical or unique
- Suppliers have strong bargaining position
- No substitutes for supplier offerings
- Suppliers sell to many industries (less dependent on you)

**Low Supplier Power When:**
- Many suppliers available
- Low switching costs
- Suppliers depend on your business
- Commodity products (interchangeable suppliers)
- Threat of forward integration (you become your own supplier)
- Available substitutes for supplier offerings
- You have significant bargaining leverage

**Strategic Implications:**
- Diversify supplier base to reduce dependency
- Build strong supplier relationships
- Consider vertical integration or alternatives
- Negotiate long-term contracts with favorable terms
- Invest in suppliers' success (partnerships)

---

### 3. Buyer Power (How much power do customers have?)
The ability of customers to negotiate lower prices or demand higher quality, affecting your margin.

**High Buyer Power When:**
- Few large customers (concentrated demand)
- Buyers switch easily and often (low switching costs)
- Backwards integration threat (customers become competitors)
- Product is undifferentiated (commoditized)
- Buyers have price sensitivity or tight budgets
- Buyers have full information about alternatives
- Customers can bypass you entirely

**Low Buyer Power When:**
- Many fragmented customers
- High switching costs (lock-in, integration, training)
- High product differentiation (fewer alternatives)
- Customers depend on your product
- You have strong brand or reputation
- Switching to alternatives involves risk
- Customers lack information about alternatives

**Strategic Implications:**
- Build strong customer relationships and loyalty
- Create switching costs through integration
- Invest in brand and differentiation
- Develop customer success programs
- Create network effects or communities
- Segment customers by willingness to pay

---

### 4. Threat of Substitutes (Are there alternative solutions?)
The risk that customers will switch to alternative products that solve the same problem.

**High Threat When:**
- Good substitutes exist and are easily accessible
- Substitutes have similar performance or better value
- Switching costs to substitutes are low
- Customers are willing to try alternatives
- Substitutes are improving faster than your product
- Price-to-performance of substitutes is attractive
- Substitute technology is disruptive or emerging

**Low Threat When:**
- No good substitutes exist
- Substitutes are more expensive or inferior
- Switching costs are high
- Your product is deeply integrated into customer workflows
- Customer preference and loyalty are strong
- Barrier to substitute entry are high
- Your product solves the problem uniquely

**Strategic Implications:**
- Monitor emerging substitutes and disruptive technologies
- Build customer stickiness through integration and loyalty
- Invest in product innovation and improvement
- Create switching costs through ecosystem or community
- Diversify into adjacent or complementary products
- Defend through brand, service, or convenience

---

### 5. Threat of New Entrants (Can new competitors easily enter?)
The risk that new competitors will enter the market and capture share.

**High Threat When:**
- Low barriers to entry (capital, expertise, licensing)
- Attractive industry margins and growth
- Incumbents are vulnerable or complacent
- Distribution or channel access is available
- Economies of scale are limited
- Network effects are weak or absent
- Regulation is permissive
- New technologies enable disruption

**Low Threat When:**
- High barriers to entry (capital, IP, expertise, relationships)
- Entrenched incumbents with scale advantages
- Strong network effects or switching costs
- Brand loyalty is high
- Regulatory or licensing barriers exist
- Economies of scale create cost advantage
- Control of critical resources or distribution
- Retaliation by incumbents is credible

**Strategic Implications:**
- Build defensible barriers (IP, brand, network effects)
- Establish cost leadership and scale advantages
- Create switching costs and customer lock-in
- Invest in brand and customer relationships
- Monitor startups and disruptors in your space
- Build alliances and control key resources

---

## Output Process
1. Assess each of the five forces (High, Medium, Low)
2. Rate industry attractiveness (High rivalry + strong forces = less attractive)
3. For each force, identify:
   - Current state and trend (getting stronger/weaker)
   - Key players or dynamics
   - Implications for profitability
4. Prioritize the 2-3 forces most critical to your strategy
5. Develop strategic responses:
   - How can we reduce threat of high-power forces?
   - How can we leverage weak forces for advantage?
6. Identify competitive positioning opportunities
7. Create strategic initiatives aligned with force analysis

## Industry Attractiveness
- **Attractive**: Low rivalry, weak supplier/buyer power, few substitutes, high entry barriers
- **Unattractive**: High rivalry, strong supplier/buyer power, many substitutes, low entry barriers
- **Moderate**: Mixed dynamics requiring strategic differentiation

## Notes
- No industry is universally attractive or unattractive; position matters
- Same industry can be attractive for some companies, unattractive for others
- Forces change over time; re-assess as market evolves
- Use Five Forces with SWOT and PESTLE for comprehensive analysis
- Strategy should directly address the highest-force threats

---

### Further Reading

- [The Product Management Frameworks Compendium + Templates](https://www.productcompass.pm/p/the-product-frameworks-compendium)