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Porter's Five Forces — Supply Market Analysis

Score 1 (low threat/power) to 10 (high threat/power) · Higher scores = less attractive market for the buyer

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◆ CIPS exam tip — Porter's Five Forces for procurement

Porter's model was designed for industry attractiveness — in procurement we apply it to assess the supply market. High supplier power = buyer is in a weak position. Low competitive rivalry = few suppliers, less pressure to offer good terms. Always conclude with what the analysis means for your sourcing strategy — not just the scores. A high-power supplier market demands a different approach (relationship building, dual sourcing, long-term contracts) to a competitive one.

Force scores summary
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Overall score (out of 50)
Complete scores above
Score interpretation: 10–20 — Attractive market, buyer has leverage
21–35 — Mixed — develop relationships, manage risks
36–50 — Challenging market, supplier has power