Using Porter's analysis, firms are likely to generate higher profits if the industry includes which of the following?
A) Difficult to enter
B) Unlimited rivalry
C) Buyers are strong
D) There are many substitutes

Question

Quizplus · Accepted Answer

According to Porter's analysis, if an industry is difficult to enter, there will be fewer firms competing against each other, creating an opportunity for higher profits. Unlimited rivalry, strong buyers, and many substitutes can all lead to lower profits for firms in the industry.

Using Porter's Analysis, Firms Are Likely to Generate Higher Profits