Which of Porter's five forces is most directly influenced by the following factors: number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs?
A) threat of new entrants
B) rivalry among existing firms
C) threat of substitutes
D) bargaining power of buyers
E) bargaining power of suppliers

Question

Quizplus · Accepted Answer

The number and balance of competitors, degree of difference between products, growth rate of an industry, and level of fixed costs are all factors that directly influence the intensity of rivalry among existing firms. This is because these factors determine the level of competition in the market and the degree of pressure that firms face to compete on price, quality, and other factors. The other forces are influenced by different factors, such as the threat of new entrants being influenced by barriers to entry and the bargaining power of suppliers being influenced by the concentration of suppliers in the market.

Which of Porter's Five Forces Is Most Directly Influenced by the Following