Which of the following statements is true of Porter's five-force model?

Question

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Porter's Five Forces model is a tool used to analyze a business's competitive environment. It considers the threat of new entrants, the threat of substitutes, the bargaining power of buyers, the bargaining power of suppliers, and the intensity of competitive rivalry. This model is indeed often used in practice to assess a specific firm's external environment, helping businesses understand the forces at play in their industry and strategize accordingly.

Which of the Following Statements Is True of Porter's Five-Force