Porter's Five Forces model did not recognize one force, which is:
A) the power of complement providers.
B) the risk of entry by potential competitors.
C) the intensity of rivalry among established companies within an industry.
D) the bargaining power of suppliers.
E) the threat of substitutes.

Question

Quizplus · Accepted Answer

Porter's Five Forces model focuses on five forces that shape the competitive environment of an industry, which include the risk of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitutes, and intensity of competitive rivalry. However, it does not explicitly account for the power of complement providers, which refers to the influence of companies that offer complementary products or services that enhance the value of a primary product or service.

Porter's Five Forces Model Did Not Recognize One Force, Which