The intensity of Porter's five forces model determines ________.
A) the exact number of customers a company will have
B) the exit strategy of a firm
C) how sustainable an industry's profitability will be
D) how to achieve a monopoly in the market

Question

Quizplus · Accepted Answer

The intensity of Porter's five forces model helps determine how sustainable an industry's profitability will be. It analyzes various factors such as the threat of new entrants, bargaining power of suppliers and buyers, intensity of competitive rivalry, and threat of substitute products or services. By analyzing these factors, a company can assess the level of competition in the industry and make strategic decisions to achieve sustainable profitability. The other options (A, B, and D) are not directly determined by Porter's five forces model.

The Intensity of Porter's Five Forces Model Determines ________