When applying the five forces model,the first step should ideally be
A) drawing a strategic-group map.
B) identify the underlying drivers of each force.
C) assessing the overall industry structure.
D) defining the relevant industry.

Question

Quizplus · Accepted Answer

In the five forces model, industry boundaries are drawn by identifying a group of incumbent companies that face more or less the same suppliers and buyers. This group of competitors is likely to be an industry if it also has the same entry barriers and a similar threat from substitutes. In this model, therefore, an industry is defined by commonality and overlap in the five competitive forces that shape competition.

When Applying the Five Forces Model,the First Step Should Ideally