The five forces model over-emphasizes threats and downplays opportunities.

Question

Quizplus · Accepted Answer

The five forces model focuses on analyzing threats to a company's profitability and competitive position in an industry. While it does address opportunities to some extent, it primarily emphasizes the threats posed by competitors, suppliers, buyers, new entrants, and substitutes. Therefore, it can be argued that the model overemphasizes threats and downplays opportunities.

The Five Forces Model Over-Emphasizes Threats and Downplays Opportunities