The five competitive forces model expands the arena of competitive analysis beyond direct competitors (i.e., rivals) to include buyers and suppliers who may also be a source of competition.

Question

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The five competitive forces model, developed by Michael Porter, includes the threat of new entrants, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and the intensity of competitive rivalry, thus expanding the analysis beyond just direct competitors.

The Five Competitive Forces Model Expands the Arena of Competitive