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5 Forces Analysis

The 5 Forces Analysis is a tool widely used by companies and development practitioners. It is based on Michael Porter's work on strategy. Porter argued that the competitive position of a company is influenced by 5 Forces: The rivalry in the market where it operates, its bargaining position with suppliers, its bargaining position with customers, the threat of new entrants, and the threat of substituting products.

Over time, this framework has also been applied to groups of companies, for instance a local cluster. We have taken the 5 Forces tool from the desktop into the workshop venue, running interactive workshops with local stakeholders from a given subsector in a given locality. A 5 Forces Workshop is a robust way of collecting relevant information on a local subsector while at the same time stimulating a topical discussion among business owners. 

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