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Five Forces Model
“How Michelle Phan Built A $500 Million
Company”
Cooper Reff
With technology always moving forward new products are being challenged in the
market place every day. However, the success of one man/ladies idea is relied on much more
than that great idea alone. What is to say your product is better than the others in that same
industry? In order for a product idea or business to be successful managers must think “strategy.”
Threats and opportunities exist within each industry environment. Porters fives forces model
provides a guideline to aid in the analysis of an environment. An article release on forbes.com
titles “How Michelle Phan Built A $500 Million Company” shows how a strategic plan led
Michelle to great success. By applying the five forces in Porters model; risk of entry, rivalry
among established companies, bargaining power of buyers/suppliers, and threat of substitutes,
one can see how environment analysis is important in the success of the business.
“Doubters were not convinced there was an appetite in a crowed subscription
marketplace” (Robehmed, 2015). That statement made in the article tells us about the risk of
potential competitors, which is the first force to look at in Porters model. Potential competitors
are “companies that are not currently competing in an industry, but have the capability to do so if
