What does the Five Forces Model help determine the relative attractiveness of?
A) An organization
B) A company
C) An industry
D) An investment

Question

Quizplus · Accepted Answer

The Five Forces Model is a framework for analyzing the competitive forces within an industry, and it helps determine the relative attractiveness of that industry. It assesses the threats posed by new entrants, bargaining power of suppliers, bargaining power of customers, the threat of substitute products or services, and the intensity of competitive rivalry. Therefore, the Five Forces Model helps determine the competitive forces that shape an industry's attractiveness or profitability.

What Does the Five Forces Model Help Determine the Relative