1. Competitive Rivalry: Standing Out in a Crowded Market

One of the first things Porter’s model encourages you to examine is the intensity of competition in your industry. A high level of competitive rivalry means customers have lots of choices, and it becomes harder to stand out. This is particularly important when designing your website. By evaluating your competitors’ sites, their visual identity, messaging, user experience, and calls to action, you can identify opportunities to set yourself apart.

Your site should aim to communicate your unique value proposition clearly and confidently. Whether it’s through bold branding, superior UX, or better storytelling, your design should help you carve out a distinctive space in the market. A website that reflects deep awareness of the competition becomes a tool for both conversion and brand loyalty.

Ask: How intense is the competition in your industry?

• Count the number of competitors.

• Analyse market share distribution.

• Assess how differentiated your offerings are.

• Consider switching costs for customers.

High rivalry = Price wars, reduced margins, need for innovation.

Complete a competitive analysis here with applicable templates. 

2. Threat of New Entrants: Raising the Bar with Experience

In industries where entry barriers are low, new competitors can emerge quickly, especially online. If it’s easy for someone to launch a similar service or product, your site must do more than just look good, it must create an experience that’s hard to replicate. A thoughtfully designed site that builds trust, educates your audience, and reinforces your brand positioning can serve as a strong defense.

From a strategic design perspective, this means investing in high-quality visuals, original content, and features that make your customer journey seamless and enjoyable. The more value your website provides beyond the product itself, the more it acts as a moat that deters new entrants.

Ask: How easy is it for new players to enter the market?

• Look at barriers to entry (e.g. capital requirements, regulations, brand loyalty).

• Consider economies of scale.

• Think about access to distribution and technology.

High threat = More competition, pressure to innovate or reduce prices.

3. Bargaining Power of Suppliers: Designing with Flexibility

Though this force often applies more directly to physical product businesses, it’s still relevant in a digital context particularly if your website relies on third-party platforms, software, or integrations. When suppliers or service providers hold too much power, they can limit your options or drive up your costs.

This is why it’s important to design your website with flexibility and scalability in mind. Choose CMS platforms, plugins, and integrations that offer you control and room to grow. A modular, adaptable site structure ensures that if you need to switch tools or vendors in the future, your website can evolve without disruption or excessive expense.

Ask: How much power do your suppliers have over pricing and terms?

• Count how many suppliers are available.

• See how unique their product/service is.

• Evaluate how costly it is to switch suppliers.

High power = Higher costs, less negotiation leverage.

4. Bargaining Power of Buyers: Creating Value Through Design

Today’s users have more power than ever. With endless options just a click away, they can easily compare prices, features, and experiences. To keep their attention and win their trust, your website must go beyond surface-level design. It needs to create real value.

This could mean simplifying navigation to reduce friction, using testimonials and social proof to build credibility, or offering content that educates and empowers your visitors. Personalisation, intuitive UX, and clear messaging all help ensure that users feel understood and supported which can make them less price-sensitive and more loyal. Design becomes your silent salesperson, convincing users to stay, explore, and eventually convert.

Ask: How much influence do customers have on pricing and features?

• Are there many alternative providers?

• Can customers easily switch?

• How price-sensitive are they?

High power = Demands for lower prices, better service, more value.

5. Threat of Substitutes: Positioning Your Brand for Longevity

Finally, Porter’s fifth force challenges you to consider the alternatives your customers might turn to. Substitutes don’t have to be direct competitors, they can be entirely different solutions to the same problem. For instance, a web-based design service could be a substitute for hiring a freelance designer.

Understanding what your audience sees as substitutes helps you sharpen your positioning. Your website should clearly communicate why your solution is not just different, but better. Use visuals, case studies, and brand voice to tell a compelling story. A well-designed site that educates and connects emotionally can reduce the appeal of alternatives and build long-term loyalty.

Ask: Are there alternative solutions to what you offer?

• Identify other products/services that meet the same need.

• Assess how easy and affordable those substitutes are.

• Look at trends and changes in consumer behaviour.

High threat = Customer loss, need for differentiation and value-adding features.

Read more about Porter’s Five Forces here.