A key proposition of the five forces framework is that industry structure is unrelated to firm performance and the strength of the five forces.

Question

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The key proposition of the five forces framework is that industry structure does have an impact on firm performance and the strength of the five forces. The framework suggests that firms in highly competitive industries with strong forces may face challenges to their profitability. Therefore, businesses should consider the industry structure when making strategic decisions.

A Key Proposition of the Five Forces Framework Is That