Porter's five forces model only considers direct competitors within a single industry.

Question

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Porter's five forces model considers five different forces that impact the competitive intensity and attractiveness of a particular industry. These forces include the threat of new entrants, the bargaining power of suppliers and customers, the threat of substitute products or services, and the intensity of competition among direct competitors. Therefore, Porter's model does not only focus on direct competitors but also takes into account several other factors that affect the industry's competitiveness.

Porter's Five Forces Model Only Considers Direct Competitors Within a Single