The five forces model is a framework
A)For increasing buyer power in the market
B)For improving competition in the industry
C)For analyzing the attractiveness of an industry
D)For increasing supplier power in the market

Question

​The five forces model is a framework
A)​For increasing buyer power in the market
B)For improving competition in the industry
C)For analyzing the attractiveness of an industry
D)​For increasing supplier power in the market

Quizplus · Accepted Answer

The five forces model is a framework for analyzing the attractiveness of an industry. It focuses on five key forces: 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. By assessing these forces, businesses can make strategic decisions about how to compete within an industry. The other options (A, B, and D) are not accurate descriptions of the purpose of the five forces model.

​The Five Forces Model Is a Framework

The Five Forces Model Is a Framework