How to lay out the answer. Follow the frame, then write it in your own words.
1 · Introduce. Michael Porter of Harvard (1979) said five forces decide the intensity of competition and the profit potential of an industry.
2 · Draw the model. [Rivalry in the centre; new entrants above, substitutes below, suppliers on the left, buyers on the right, arrows pointing to the centre]
3 · Explain each force.
Threat of new entrants: depends on entry barriers.
Supplier power: few suppliers, unique inputs.
Buyer power: few large buyers, easy switching.
Threat of substitutes: other ways to meet the need.
Rivalry: many equal rivals, slow growth.
4 · Judge attractiveness. Strong forces mean low profit potential; weak forces mean an attractive industry.
5 · Link to strategy. Choose cost leadership, differentiation or focus to defend against the strongest forces.
6 · In Sri Lankan business. Mobile services: high rivalry (Dialog, SLT-Mobitel, Hutch), app-call substitutes, high entry barriers from licences.
7 · Limitations. It is a snapshot; it ignores cooperation and the role of government; industry borders blur in the digital age.
8 · Close. The model shows managers where profit is squeezed and where to act.
Scoring tip: The labelled five-force diagram is the heart of the answer. Draw it first, then explain each arrow.
