According to Michael Porter, firm profitability is dependent on ______.
A) industry structure
B) people
C) the initial capital employed
D) the economy

Question

Quizplus · Accepted Answer

According to Michael Porter's five forces model, firm profitability is largely determined by the level of competition in the industry and the bargaining power of suppliers and buyers. Therefore, the answer is industry structure, which is represented by the five competitive forces. People, initial capital employed, and the economy may all have some impact on firm profitability, but they are not the primary drivers according to Porter's model.

According to Michael Porter, Firm Profitability Is Dependent on ______