The collective impact of the five competitive forces on competitive pressures tends to
A)strengthen the industry's driving forces.
B)lower the combined profitability of industry members.
C)make it difficult to achieve a competitive advantage via anything other than being the industry's low-cost leader.
D)increase the opportunities for industry incumbents to attain a competitive advantage.
E)raise the number of industry key success factors.

Question

Quizplus · Accepted Answer

The collective impact of the five competitive forces is to increase competitive pressures, which reduces the profitability of industry members. This makes it difficult for companies to achieve a competitive advantage, as they must either be the low-cost leader or find other innovative ways to stand out. The forces do not necessarily strengthen driving forces, increase opportunities for incumbents, or raise the number of key success factors.

The Collective Impact of the Five Competitive Forces on Competitive