According to the textbook, the five competitive forces included in the five-forces model determine:
A) the average rate of new business starts in an industry
B) the average growth rate for the firms in an industry
C) the average rate of return for the firms in an industry
D) the average sales for the firms in an industry
E) the average failure rate for the firms in an industry

Question

Quizplus · Accepted Answer

The five competitive forces included in the five-forces model determine the average rate of return for the firms in an industry, as they assess the level of competition and bargaining power in the industry, which ultimately affects the profitability of the firms. The other options (A, B, D, and E) are not directly related to the five competitive forces model.

According to the Textbook, the Five Competitive Forces Included in the Five-Forces