Which of the following statements about Michael Porter's Five-Forces Model of Industry Competition is not true?
A) Substitutes and alternatives are indirect competition.
B) There are five sets of sources of competition.
C) Rivals are direct competition.
D) New entrants are an industry source of competition.

Question

Quizplus · Accepted Answer

This statement is true, so it is not the correct answer. The Five-Forces Model of Industry Competition includes five sets of sources of competition: (1) new entrants, (2) substitutes and alternatives, (3) bargaining power of suppliers, (4) bargaining power of customers or buyers, and (5) rivalry among existing firms in the industry.

Which of the Following Statements About Michael Porter's Five-Forces Model