A SWOT analysis is a useful tool for assessing the internal strengths and weaknesses of an organization (1). By examining one’s own resources, capabilities, and potential opportunities or threats they can gain valuable insight into how they may be able to improve upon their business model. However, while this process is important in understanding the environment in which a company operates, it cannot offer a complete analysis of all external factors that could influence its success.

In contrast to a SWOT analysis, Porter’s Five Forces examines the larger economic forces that shape competition within an industry (2). This framework takes into account five key elements—buyer power, supplier power, competitive rivalry , threat of substitute products/services , and threat of new entrants–and looks at how each of these factors can impact on pricing strategies , profit margins , market share etc.

By looking beyond one’s immediate internal operations and considering broader influences such as customer demand political climate legal restrictions etc businesses can gain a better perspective on both their current position and future outlook . Additionally this type modeling allows for more informed decision making when it comes time to allocate resources other strategic planning considerations