Two well-known models in use for strategic planning have their roots from the Harvard Business School. The analysis of strengths, weaknesses, opportunities and threats (SWOT) was a popular Harvard model from the early 1980’s . It is the most commonly used model for identifying the key advantages and disadvantages of products and services. It is also helpful in analyzing competition.

Michael Porter’s Five Forces is another useful model by whichcompanies can analyze their market position within an industry. The Five Forces model goes beyond the typical Strengths, Weaknesses, Opportunities and Threats analysis and  identifies ways in which the market is susceptable to change from external forces such as technological advances. It forces institutions to predict or explore substitutes .

Porter’s thesis with Five Forces is that the level of competitive rivalry is paramount to how to best strategically plan.With the Porter model, outside influences such as buyer’s power are considered along with other key questions not included in a SWOT analysis. Porter, who hails from the Harvard Business School, first developed the Five Forces Theory as part of his strategy treatise, “The Competitive Advantages of Nations (1986). Porter’s Five Forces theory provides an alternative framework to analyze markets beyond the strengths, weaknesses, opportunities and threats paradigm and is highly recommended for new ventures or start ups.