Asked by Zachary Eierman on Jul 17, 2024
Verified
The five forces model is a framework
A) For increasing buyer power in the market
B) For improving competition in the industry
C) For analyzing the attractiveness of an industry
D) For increasing supplier power in the market
Five Forces Model
A framework developed by Michael Porter that analyzes five key forces shaping the competitive intensity and profitability within an industry.
- Obtain knowledge about the Industrial Organization (IO) approach to industry configuration, outcomes, and competitive edge.
Verified Answer
DM
deliah mooneyJul 21, 2024
Final Answer :
C
Explanation :
The five forces model is a framework for analyzing the attractiveness of an industry. It focuses on five key forces: the threat of new entrants, the bargaining power of buyers, the bargaining power of suppliers, the threat of substitute products or services, and the intensity of competitive rivalry. By assessing these forces, businesses can make strategic decisions about how to compete within an industry. The other options (A, B, and D) are not accurate descriptions of the purpose of the five forces model.
Learning Objectives
- Obtain knowledge about the Industrial Organization (IO) approach to industry configuration, outcomes, and competitive edge.
Related questions
Attractive Industries Have All the Following Attributes,except ...
Which of the Following Is True According to the IO ...
The Industrial Organization Economics Perspective Locates the Source of Competitive ...
Typical Structure Characteristics of Interest to Industrial Organization Researchers Include ...
In the IO Perspective,it Is Important to Enter an Industry ...