As we begin the new year, I am reminded of the importance of looking to the future for growth. One of the tools I use at Capstone when we begin work with clients is Michael Porter’s ‘‘Five Forces’’ model for analyzing a company’s relative position in the market. It invites you to look at the pressures on your business from several key perspectives and provides a tool both for diagnosis and prescription. I like the Porter model because it pushes you to see beyond competition, where most business owners tend to get fixated. Possibly the single most important shift in thinking I introduce to my clients lies here. I pull their attention away from their competition and onto their market. Together, we break the spell of the present and lift our eyes to the future.
Michael Porter’s “Five Forces” Model
