The primary purpose of applying Michael Porter's five forces model is to
A) waste time and resources.
B) determine the profit potential of an industry.
C) maximize opportunities and threats in the external environment.
D) increase uncertainty regarding environmental characteristics.

Question

Quizplus · Accepted Answer

The primary purpose of applying Michael Porter's five forces model is to determine the profit potential of an industry by analyzing the competitive forces that impact the industry. It helps businesses to understand the level of competition in the industry and to make strategic decisions based on that information. Option A, C, and D are incorrect as they do not accurately capture the purpose of applying the model.

The Primary Purpose of Applying Michael Porter's Five Forces Model