The forces driving service area completion (the five forces model of service area structural analysis) are:
A)Threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products or services, and rivalry among existing firms.
B)Market share, bargaining power of employee groups, threat of regulation, quality of products or services, and similarities among existing firms.
C)Threats of internal weaknesses, weakness of suppliers, customer satisfaction, quantity of products or services, and diversity of existing firms.
D)Internal strengths, quality of the management team, bargaining power of customers, earnings per share, and cooperation among existing firms.

Question

Quizplus · Accepted Answer

The five forces model of service area structural analysis includes the following driving forces: threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products or services, and rivalry among existing firms. These factors determine the level of competition in a service area and affect the profitability of the firms operating in that area.

The Forces Driving Service Area Completion (The Five Forces Model