The intensity of Porter's five forces determines ________.
A) the exact number of customers a company will have
B) the exit strategy of a firm
C) how sustainable an industry's profitability will be
D) how to achieve a monopoly in the market

Question

Quizplus · Accepted Answer

Porter's five forces determine how sustainable an industry's profitability will be by analyzing the competitive forces that exist within the industry, including the threat of new entrants, the bargaining power of suppliers and customers, the intensity of rivalry among competitors, and the threat of substitute products or services. This analysis helps firms understand the level of competition they will face within an industry and develop strategies to stay competitive in the long term. Choices A, B, and D are not accurate as they do not align with the purpose of Porter's five forces analysis.

The Intensity of Porter's Five Forces Determines ________