Porter's Five Forces model did not recognize one force, which is:
A)the power of complement providers.
B)the risk of entry by potential competitors.
C)the intensity of rivalry among established companies within an industry.
D)the bargaining power of suppliers.
E)the threat of substitutes.

Question

Porter's Five Forces model did not recognize one force, which is:
A)the power of complement providers.
B)the risk of entry by potential competitors.
C)the intensity of rivalry among established companies within an industry.
D)the bargaining power of suppliers. 
E)the threat of substitutes.

Quizplus · Accepted Answer

Porter's Five Forces model recognizes the power of suppliers, threat of substitutes, risk of entry by potential competitors, intensity of rivalry among established companies, and bargaining power of buyers. However, it does not recognize the power of complement providers, which can also impact an industry. Complement providers are companies that offer products or services that enhance the value or functionality of another company's product or service.

Porter's Five Forces Model Did Not Recognize One Force, Which