Porter's five forces model is exempt from criticism, because it explains most of the variation in profitability across industries

Question

Quizplus · Accepted Answer

While Porter's five forces model is a valuable tool for analyzing industry profitability, it is not exempt from criticism. Some critiques include the model's lack of consideration for external factors such as technological advances or government regulations, as well as its limited focus on industry competition rather than broader market trends.

Porter's Five Forces Model Is Exempt from Criticism, Because It