According to the business strategy model developed by Harvard Business professor Michael Porter's, an industry's profit potential is largely determined by _____________.
A) The intensity of competitive forces within the industry
B) Availability of necessary resources to produce the product/service
C) Technological proficiency of companies in the industry
D) Availability of skilled and unskilled labor

Question

Quizplus · Accepted Answer

According to Michael Porter's business strategy model, an industry's profit potential is largely determined by the intensity of competitive forces within the industry. This includes factors such as the number and strength of competitors, the bargaining power of buyers and suppliers, the threat of new entrants, and the threat of substitute products or services. Availability of resources, technological proficiency, and availability of skilled and unskilled labor can also affect a company's competitive position within the industry, but they do not determine the overall profit potential of the industry itself.

According to the Business Strategy Model Developed by Harvard Business