Five Forces

Significant wealth is created across generations and among communities. Where there is time. Significant wealth exists beyond the world of hand-to-mouth where you consume all the excess you create. Where there is space to breathe. Significant wealth is leaky. Where there are people growing around you. When analysing a business, you don’t look at it in isolation. The “Porter Five Forces Framework” is one way of looking at where a business stands. It always comes back to supply and demand. How much is there? How much is wanted? The five forces are the bargaining power of (1) suppliers and (2) buyers, the threat of (3) new entrants and (4) new substitutes (a better solution), and (5) the industry rivalry (the competition). For anyone to do well, everyone needs to do well. That is why the idea of “self-made” is rubbish. Win-win problem solving is relationship building. Wealth creation rather than wealth extraction. It comes from listening to signals of what needs doing. Gaining the skills and knowledge to do it.  And getting it done. It comes from connection.