BACHELOR OF BUSINESS ADMINISTRATION

Detailed explanation-1: -Solution(By Examveda Team) The five forces model developed by Michnal E Porter has been the most commonly used analytical tool for examining competitive environment.

Detailed explanation-2: -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.

Detailed explanation-3: -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-4: -Five forces analysis helps organisations to understand the factors affecting profitability in a specific industry, and can help to inform decisions relating to: whether to enter a specific industry; whether to increase capacity in a specific industry; and developing competitive strategies.