GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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helps companies to analyze their industry and determine their level of competitiveness
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negative or unfavorable external factors that affect businesses and their level of competitiveness
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a specific group of consumers to whom a company aims the selling of its products or services
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a favorable, external factor companies cannot control
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items (materials) used in the production of a good
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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: -Porter’s Five Forces are Threat of new entrants, Bargaining power of buyers, Bargaining power of suppliers, Threat of new substitutes, and Competitive rivalry. This framework helps strategists understand what makes an industry profitable and provides insights needed to make strategic choices.
Detailed explanation-3: -Competitive Rivalry. Supplier Power. Buyer Power. Threat of Substitution. Threat of New Entry.
Detailed explanation-4: -Threat of New Entrants. The threat of new entrants into an industry can force current players to keep prices down and spend more to retain customers. Bargaining Power of Suppliers. Bargaining Power of Buyers. Threat of Substitute Products. Rivalry Among Existing Competitors.