The five forces model presents a static view of the business environment. This is a good thing.

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Quizplus · Accepted Answer

The five forces model, developed by Michael Porter, is indeed a tool for analyzing the competitive environment of a business, but describing it as presenting a "static" view as being "a good thing" is misleading. The model helps in understanding the dynamics of competition and the underlying factors that drive profitability in an industry. However, the business environment is constantly changing, and relying solely on a static analysis without adapting to new trends, technologies, and competitive behaviors can lead to strategic missteps. Therefore, while the five forces model is valuable, its effectiveness is enhanced when used in conjunction with ongoing analysis that accounts for the evolving nature of business environments.

The Five Forces Model Presents a Static View of the Business