According to the Five Forces Model developed by Harvard Business professor Michael Porter, all of the following are major factors that determine a company's standing in an industry, except:
A) Threat of entry of new competitors
B) Political and/or economic factors
C) Bargaining power of suppliers
D) Threat of substitute products/services

Question

Quizplus · Accepted Answer

While political and economic factors can certainly impact a company's operations, they are not one of the five forces identified by Porter's model as directly affecting a company's standing in an industry. The five forces are threat of entry of new competitors, bargaining power of suppliers, bargaining power of buyers, threat of substitute products or services, and rivalry among existing competitors.

According to the Five Forces Model Developed by Harvard Business