According to Porter,the collective strength of the interaction of potential entrants,buyers,substitutes,suppliers,firm rivalry,and other stakeholders determine
A) the level of government action in an industry.
B) the probable industry attractiveness and business strength position.
C) the ultimate profit potential in the industry measured in terms of long-run return on invested capital.
D) the aggregate level of demand for a product line.
E) the amount of pressure from the societal environment.

Question

Quizplus · Accepted Answer

Porter's Five Forces framework posits that the collective strength of the forces of potential entrants, buyers, substitutes, suppliers, and firm rivalry determines the competitive intensity and thus the profitability of an industry. This is reflected in the ultimate profit potential of the industry, measured in terms of long-run return on invested capital.

According to Porter,the Collective Strength of the Interaction of Potential