Below are the steps in conducting Porters' five force analyses:

$1.$Identify clearly the product$/$service or industry $($industry$-$boundary$)$ and market $($local$,$ domestic, or global$).$

$2.$The analysis must be done at industry$-$level $($comparing across industries$),$ not firm$-$level $($comparing across firms$).$

$3.$Identify competitors. It may be better to focus on a specific strategic group.

$4.$Identify supplying industry and customers$$ industry. Draw the industry$-$level value chain if necessary.

$5.$Evaluate each of the five force $($low$-,$ medium$-,$ or high$-$threat$).$ Provide justifications for your evaluations.

$$Competitive rivalry: numbers of competitors? Similar products? Market growth?

$$Potential entry: Any barriers to entry $($economy of scales? Legal? Etc.$)$

$$Power of suppliers$/$customers $($comparing numbers of suppliers$/$customers $$ balance of power$).$

$$Substitute products: growth rate? Would it take over anytime soon?$)$

$6.$Evaluate whether the overall industry conditions are favorable! $($whether we should continue doing business or exit?$)$