Porter’s Five Forces Simulation

Students master competitive strategy by actively analyzing and shaping industry dynamics using the renowned Porter’s Five Forces framework in our strategy simulation game.

Porter’s Five Forces Simulation Overview

Participants step into the role of corporate strategists or management consultants tasked with diagnosing and improving a company's competitive position. Each round presents a new industry scenario with shifting dynamics, new entrants emerging, supplier power changing, or disruptive substitutes gaining market share.

They must analyze detailed industry data, evaluate the intensity of each of the five competitive forces, and recommend strategic moves to improve profitability and defend market position. The simulation emphasizes strategic thinking under pressure, blending analytical rigor with executive decision-making.

This simulation is ideal for university strategy courses, MBA programs, and corporate training workshops. It transforms the classic Five Forces framework from a static model into a dynamic, interactive experience, showing how strategic choices directly impact a firm’s competitive landscape and bottom line.

Porter’s Five Forces Simulation Concepts

Participants work through realistic scenarios, which can be customized to emphasize or exclude specific topics depending on the learning goals. This modular structure allows the simulation to be tailored to any type of session. Key concepts include:

Threat of New Entrants
Bargaining Power of Suppliers
Bargaining Power of Buyers
Threat of Substitute Products or Services
Rivalry Among Existing Competitors
Dynamic Force Interaction
Strategic Response Formulation
Industry Profitability Analysis

Gameflow

What Participants Do

In the simulation, participants will:

Analyze comprehensive industry reports and competitive data.
Evaluate the strength and impact of each of the five competitive forces.
Diagnose the key challenges and opportunities within a given industry structure.
Formulate strategic initiatives to alter force dynamics in their company’s favor.
Present and defend their strategic recommendations to a simulated board.
Adapt their strategy across multiple rounds as industry conditions evolve.

Learning Objectives

By the end of the simulation, participants will be able to:

Understand and apply each component of the Porter’s Five Forces framework.
Diagnose an industry’s underlying structure and its implications for profitability.
Identify which competitive forces pose the greatest threat or opportunity.
Formulate practical strategies to improve a company’s competitive position.
Anticipate how industry dynamics can change over time.
Communicate complex strategic analysis clearly and persuasively.

How the Porter’s Five Forces Simulation Works

This simulation can be run individually or in teams in academic or corporate contexts. Each cycle represents a stage of getting through a pressing financial situation.

1. Receive the Industry Brief Participants are introduced to a specific industry with its current financial and competitive data.

** 2. Conduct Force Analysis** They review data on competitors, suppliers, buyers, and market trends to score the intensity of each force.

3. Make Strategic Decisions Participants choose from a menu of strategic actions designed to mitigate negative forces or capitalize on positive ones.

4. Collaborate and Negotiate Teams debate findings, prioritize actions, and may role-play as different stakeholders within the company.

5. Present the Strategy Participants deliver a concise strategic plan or board presentation outlining their analysis and recommended path forward.

6. Review and Iterate Instant feedback shows the impact of their choices on market share, profitability, and competitive positioning, allowing for refined strategies in subsequent rounds.

Frequently Asked Questions

Who is the Porter’s Five Forces simulation designed for? It’s ideal for business students, strategy professionals, consultants, and any corporate teams involved in strategic planning and competitive analysis.
Do I need prior strategy experience? No prior experience is required. The simulation includes foundational instructional content on the framework for all learner levels.
How long does the simulation run? A typical session runs 2-3 hours, but it can be condensed into a 90-minute workshop or extended into a multi-round, in-depth program.
Is the simulation individual or team-based? It supports both formats effectively. Team-based play encourages debate and mirrors real-world strategy development.
What industries are covered? The simulation includes modules for multiple industries (tech, manufacturing, services) and can be customized for specific sector-focused training.
Are real-world company and industry data used? Yes. Participants work with realistic, research-backed datasets that reflect actual competitive dynamics.
Can instructors customize the simulation? Absolutely. Industry focus, force weightings, and strategic options can be tailored to match specific course or company objectives.
How is performance measured? Performance is measured by the strategic coherence of analysis, the effectiveness of chosen actions in improving competitive position, and the clarity of strategic communication.

Assessment

Assessment of participant performance can be tailored according to the host institution’s objectives (business school, corporate training, assessment centre). Typical assessment criteria include:

Accuracy and depth of their Five Forces industry analysis.
The logic and creativity of their chosen strategic responses.
The demonstrated impact of their decisions on key metrics like market position and profitability.
The clarity, persuasiveness, and professionalism of their strategic presentation.
Peer assessment of collaboration and contribution to team strategy.