<Li> Degree of transparency </Li> <P> Strategy consultants occasionally use Porter's five forces framework when making a qualitative evaluation of a firm's strategic position . However, for most consultants, the framework is only a starting point . They might use value chain or another type of analysis in conjunction . Like all general frameworks, an analysis that uses it to the exclusion of specifics about a particular situation is considered naive . </P> <P> According to Porter, the five forces framework should be used at the line - of - business industry level; it is not designed to be used at the industry group or industry sector level . An industry is defined at a lower, more basic level: a market in which similar or closely related products and / or services are sold to buyers . (See industry information .) A firm that competes in a single industry should develop, at a minimum, one five forces analysis for its industry . Porter makes clear that for diversified companies, the primary issue in corporate strategy is the selection of industries (lines of business) in which the company will compete . The average Fortune Global 1,000 company competes in 52 industries . </P> <P> Porter's framework has been challenged by other academics and strategists . For instance, Kevin P. Coyne and Somu Subramaniam claim that three dubious assumptions underlie the five forces: </P>

Porter five forces model of competition in an industry