Porter's five forces model assesses industry attractiveness by surveying these five factors ________.
A)potential entrants, suppliers, buyers, substitutes, and rivalry among existing firms
B)potential entrants, suppliers, buyers, similar products, and rivalry among existing firms
C)potential entrants, suppliers, raw materials, substitutes, and rivalry among existing firms
D)potential entrants, competitors, buyers, substitutes, and rivalry among existing firms

Question

Quizplus · Accepted Answer

Porter's five forces model assesses industry attractiveness by examining the potential threat from new entrants, bargaining power of suppliers, bargaining power of buyers, the threat of substitutes, and the intensity of rivalry among existing firms. Option A correctly identifies these five factors. Option B is incorrect because "similar products" is not one of the forces, and Option C is incorrect because "raw materials" is not a force. Option D replaces "suppliers" with "competitors," which is not accurate according to Porter's model.

Porter's Five Forces Model Assesses Industry Attractiveness by Surveying These