The Five Forces Model illustrates the forces that determine the level of product differentiation and price competition in an industry.

Question

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The Five Forces Model, developed by Michael Porter, is used to analyze an industry's competitive environment and understand the level of competition, but it does not specifically determine the level of product differentiation and price competition. It includes the threat of new entrants, the threat of substitute products or services, the bargaining power of customers, the bargaining power of suppliers, and the intensity of competitive rivalry.

The Five Forces Model Illustrates the Forces That Determine the Level