According to the textbook, the five competitive forces included in the Five Forces model determine the average ________.
A) rate of new business starts in an industry
B) growth rate for the firms in an industry
C) rate of return for the firms in an industry
D) sales for the firms in an industry
E) failure rate for the firms in an industry

Question

Quizplus · Accepted Answer

The Five Forces model is used to analyze the competitive environment of an industry, and it includes five competitive forces: the threat of new entrants, the bargaining power of customers, the bargaining power of suppliers, the threat of substitute products or services, and the intensity of rivalry among competitors in the industry. These forces ultimately determine the rate of return for the firms in an industry, making option C the correct choice.

According to the Textbook, the Five Competitive Forces Included in the Five