What is Porter's Five Forces Model?
A) Evaluation of an organization's strengths, weaknesses, opportunities, and threats to identify significant influences that work for or against business strategies.
B) Analysis of the competitive forces within the environment in which a company operates to assess the potential for profitability in an industry.
C) View of a firm as a series of business processes, each of which adds value to the product or service.
D) Generic business strategies that are neither organization nor industry specific and can be applied to any business, product, or service.

Question

Quizplus · Accepted Answer

Porter's Five Forces Model is a framework for analyzing the level of competition within an industry and business strategy development. It assesses the potential for profitability by examining competitive forces such as the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products or services, and the intensity of competitive rivalry.

What Is Porter's Five Forces Model