According to Porter's strategic planning model, an industry's profit potential is largely determined by the intensity of competitive forces within the industry.

Question

Quizplus · Accepted Answer

Porter's strategic planning model includes five competitive forces that determine an industry's profit potential: the threat of new entrants, bargaining power of suppliers, bargaining power of buyers, threat of substitute products or services, and intensity of competitive rivalry. Therefore, the statement is true.

According to Porter's Strategic Planning Model, an Industry's Profit Potential