In Porter's framework,the stronger the five forces,the more limited the ability of established companies to raise prices and earn greater profits.

Question

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This statement is correct according to Porter's five forces framework. The stronger the forces of rivalry, the bargaining power of buyers, the bargaining power of suppliers, the threat of new entrants, and the threat of substitutes, the more difficult it is for established companies to increase prices and make higher profits.

In Porter's Framework,the Stronger the Five Forces,the More Limited the Ability