BUSINESS ADMINISTRATION
STRATEGIC MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The relative attractiveness of an industry
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The competitive advantage of a competitor
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The distribution chain of a competitor
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The relative attractiveness of another business
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Detailed explanation-1: -This theory is based on the concept that there are five forces that determine the competitive intensity and attractiveness of a market. Porter’s five forces help to identify where power lies in a business situation.
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: -Porter’s Five Forces model is used to analyze the long-term attractiveness of an industry. Understanding the interaction of these forces with the existing competing organizations helps explain the differences in profitability amongst industries.
Detailed explanation-4: -Porter, the framework focuses on the microenvironment of an industry, analyzing five forces that are close to a company and affect its ability to service its customers and turn a profit. The framework aims to determine the competitive intensity and attractiveness of an industry in terms of its profitability.