BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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plan a firm’s global strategy based on internal resources
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understand a firm’s strategic internal assets
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analyse a firm’s competitive posotion in an industry
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explain some changes that firm must face
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Detailed explanation-1: -These forces include the number and power of a company’s competitive rivals, potential new market entrants, suppliers, customers, and substitute products that influence a company’s profitability. Five Forces analysis can be used to guide business strategy to increase competitive advantage.
Detailed explanation-2: -Industry analysis and structure Customers, suppliers, substitutes and potential entrants-collectively referred to as an extended rivalry-are competitors to companies within an industry. The five competitive forces jointly determine the strength of industry competition and profitability.
Detailed explanation-3: -Porter’s Five Forces Model is an important tool for understanding the main competitive forces at work in an industry. This can help you to assess the attractiveness of an industry, and pinpoint areas where you can adjust your strategy to improve profitability.