The five forces model is used to

Question

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The five forces model is used to understand the profit potential of firms in an industry by examining the competitive forces that impact profitability, including the bargaining power of suppliers and buyers, the threat of new entrants, the threat of substitutes, and the intensity of industry rivalry. It is not used to determine how many firms will enter an industry or to calculate profit levels of firms in an industry, but rather to analyze the overall competitiveness and profitability of the industry.

The Five Forces Model Is Used to